Tag Archive | "Cars"

Ministers Offer Iran Site for new Car Plant

By John Lee.

The Deputy Managing Director of of Iranian vehicle maker Iran Khodro (IKCO) has said the company has chosen Iraq as a target market for its car exports, and opened a new showroom in Baghdad last week as a first step.

Meqdad Mahmudi told Iran’s IRNA news agency that both the Iraqi Oil Minister and the Iraqi Electricity Minister had proposed giving a large site to the company to build a car manufacturing plant.

(Source: IRNA)

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IKCO to Double Vehicle Output

By John Lee.

Iran Khodro (IKCO) has reportedly announced its intention to increase production at its Iraq plant from 50 cars a day to 100.

The plant, in the central Iraqi city of Iskandariya, is IKCO’s largest car plant outside Iran.

According to a report from Just Auto, a drop in transportation fees and a more timely supply of spare parts are among reasons why the company’s vehicles are becoming more popular in Iraq.

Ali Elmi, IKCO Deputy CEO for Exports, said:

“Iran Khodro produces a variety of cars such as Runna, Samand [pictured], Soren, Peugeot Pars and Peugeot 405 in Iraq.”

(Source: Just Auto)

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Turkey’s Doğuş Expands into Iraq

By John Lee.

Hurriyet Daily News reports that Doğuş Otomotiv, the automotive arm of Turkey’s Doğuş Holding, has said it has reached an agreement with Volkswagen and Audi to establish a company in Iraq.

Doğuş Otomotiv will own 100 percent of the company that will deal with distribution and after-sale services for Volkswagen and Audi cars in the country. The new company’s initial capital will be 150 million Iraqi dinars ($128,000).

The number of Turkish companies operating in Iraqi Kurdistan has more than tripled, to around 1500, since 2009.

(Source: Hurriyet Daily News)

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Automobile Factory to be Built in Sulaymaniya

By John Lee.

Sulaymaniya’s general directorate of investment has said that a local company called ‘Mario‘ is building an automobile factory on a 22 hectare (90 donum) site.

The company will initially import parts from China and assemble them at the new plant; at a later stage the factory will also make the parts itself, according to a report from AKnews.

The land has been allocated in an industrial area near Arabt, 27km south of Sulaymaniya, and there is the option to expand the site depending on requirements.

(Source: AKnews)

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Iran Khodro to Make 30,000 Cars in Iraq This Year

Bloomberg reports that Iran Khodro, the country’s largest carmaker, plans to manufacture 30,000 cars at its production site in Iraq this year.

The company is delivering components to the plant for assembly, mostly for the Samand sedan model (pictured).

Operations at the plant, which has received investment from a local partner, started in 2011, the company said, without giving details about the partnership or the location.

(Source: Bloomberg)

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Iranian Carmaker to Build Factory in Iraq

Iranian carmaker Saipa is to build a car assembly plant in Iraq.

The factory will have capacity to output as many as 120,000 cars per year if operated around the clock.

Iran has developed its domestic car industry for five decades and produced 1.6 million vehicles last year, about half of them made by Iran Khodro.

(Source: Tehran Times)

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Growing Iraqi Car Market has “Huge Potential”

Bloomberg reports that Iraq is attracting the attention of global automakers including General Motors, Ford and Volkswagen.

Western cars were shut out of the Iraqi market by sanctions during the Saddam Hussein era, and even today there are many old VW Passats that were shipped to Iraq from Brazil between 1983 and 1990 in exchange for oil.

Now rising incomes and safer streets are fueling demand for new cars such as Chrysler‘s Dodge Charger (pictured), nicknamed “Obama” after the U.S. president by Iraqis.

Another car popular among Iraqis is the Samand, a sedan manufactured by Iran Khodro Company.

With a population of more than 30 million people and a growing economy, Iraq’s auto market has “huge potential,” said Stefan Mecha, VW’s managing director for the Middle East, projecting industrywide sales to rise by a third this year to 120,000 vehicles. Demand could get much bigger.

In neighboring Saudi Arabia, which has a population slightly smaller than Iraq’s, there are about 6.5 million registered cars, according to IHS Automotive. That’s about five times the 1.35 million vehicles in Iraq, according to Hamid Algharbawi, owner of a high-end car dealership in Baghdad. Official data aren’t available.

Iraq holds “a lot of promise,” said Larry Prein, Ford’s managing director for the Middle East. Ford expects sales to double this year after tripling to 2,000 in 2011.

Niva Car Ltd., Ford’s dealer in Iraq, plans to invest $200 million over the next three years to open new outlets to tap the rising demand, said Mohammad Fuad Alanaswah, the dealer’s chief. “It’s a tough market to be in, but it is growing,” said Alanaswah. “We believe in our market. That’s why we are expanding.”

GM plans to invest in new showrooms and service centers in Iraq after initially entering the market in 2003 by selling to the government, U.S. forces and aid organizations, said John Stadwick, head of GM’s Middle East operations.

Last year, GM’s sales surged 68 percent to 32,000 cars, making Iraq its second- largest market in the region after Saudi Arabia.

(Sources: Bloomberg, Digital Trends)

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Hyundai Signs $36m Contract for Iraqi Car Plant

The ‘Iraqi Automobile Industry Company’ [State Company for Automotive Industry] has reportedly signed a contract with the South Korean company Hyundai to manufacture and assemble Hyundai cars.

The contract, worth with 44 billion Iraqi dinars [$36 million], involves the production of 2000 saloon cars annually.

The manufacturing line is to be completed within three years.

As of 2011, the Hyundai Kia Automotive Group is the eighth largest, and fastest growing car manufacturer in the world. It has plants all over the planet, including operations in Turkey (Hyundai Assan Otomotiv) and Egypt (the Ghabbour Group).

The Iraqi company has completed an economic feasibility study to build a factory that will produce an Iraqi-made car.

(Source: Aswat al-Iraq, Construction Week Online)

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