Financial Tribune- Iranian automotive firms produced 1,515,396 cars and heavy-duty vehicles in 2017 indicating an 18.19% year-on-year growth.
According to the latest statistics released by Organisation Internationale des Constructeurs d’Automobiles, 1,718,565 units were sold in the country last year. The number has observed an 18.64% y/y hike. 203,169 units were supplied through imports.
On its website, OICA reports that in 2017, Iranian carmakers produced 1,418,550 cars and 96,846 commercial vehicles indicating an 18.19% growth from a year ago.
This is the third time Iranian producers pass the 1.5-million threshold. In 2010 and 2011, the companies recorded respective outputs of 1,599,454 and 1,649,311.
Moreover, for the second consecutive year, Iranian automotive firms have recorded an over 18% growth rate in their total output.
In 2017 and among major players, Iran is the fourth country in terms of fastest y/y growth rate following Brazil with 25.20%, Portugal 22.68% and Russia 19.01%.
The organization also reports that Iranian automotive firms produced 1,164,710 vehicles in 2016, recording an 18.6% YoY increase claiming the title of the fastest growing auto producer worldwide.
Furthermore, over the past three years, Iran’s worldwide ranking in terms of the number of vehicles produced has improved constantly. Currently, the country is ranked the 16th largest carmaker in the world. The country’s standing in 2016 and 2015 was respectively 18th and 20th.
Industry insiders and observers are of the opinion that the Iranian carmakers’ strong growth will continue in the coming years since several joint production deals between local and foreign carmakers will kick into gear.
The country’s largest carmaker Iran Khodro has forged a joint venture deal with PSA Group’s Peugeot brand while its arch-rival SAIPA has joined hands with PSA’s Citroen to manufacture several models in Iran. The country’s major private automotive firm Kerman Motor has also signed a production deal with South Korea’s Hyundai Motors.
Furthermore, Chinese brands such as Chery and JAC are also present in the country and have announced plans to expand their presence in Iran.
The OICA figures indicate that the global automotive production rate stood at 97.3 million in 2017 with cars— as expected—claiming a 75.49% share of the total output. Furthermore, the sector observed a 2.36% year-on-year growth in 2017. Iran had a 1.55% share of the global auto industry in terms of output.
Top-ranked countries in terms of the number of vehicles produced are China with 29 million, the US with 11 million, Japan (9 million) and Germany (5 million) followed by India (4 million) and South Korea (4 million).
It merits mention that while the Chinese and Japanese automotive sectors respectively recorded growth rates of 3.19% and 5.31%, the American and German carmakers production declined 8.13% and 1.76%.
Founded in 1919 in Paris, OICA is an international trade association which facilitates communication among its members.