Tag Archive | "Cars"

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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General Motors Top Seller in Iraq


Fox News reports that General Motors (GM) sold approximately 35,000 vehicles in Iraq last year.

The company’s Global Communications Officer, Klaus-Peter Martin, told Fox that the number was up from just 1,000 vehicles five years ago.

General Motors manages the Middle East region from an office in Dubai, and markets its cars and trucks in Iraq through several dealers serviced by local distributor Al-Mansour Automotive Company.

Precise market data from Iraq is not available, but overall new car sales for 2011 are estimated to be around 115,000, with GM likely to take the number one position. Martin expects the market size to roughly double by 2015.

Chrysler currently works with one dealership in Baghdad that sells Town and Country minivans and the 300 luxury sedan, while the Northern Iraq Vehicle Agency sells Fords through its office in Sulaimaniyah.

Although Chevy and GMC pickup trucks and SUVs may be the most visible products on the streets of Baghdad and elsewhere, GM’s regional office in Dubai reports that its top sellers are actually low-priced small cars like the Chevrolet Aveo.

(Source: Fox News)

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Contract Signed with Chinese Co. to Assemble Cars


Iraq’s state-owned General Company for Car Manufacturing, which belongs to the Ministry of Industry & Minerals, has signed a contract with the Chinese Proton Company, to assemble and market 1,000 cars annually.

According to the report from Aswat al-Iraq, the Iskandariya-based company has also signed a contract with the Teachers Syndicate to supply teachers with 50,000 saloon cars, on an installment basis.

The Director-General of the Cars Manufacturing Company, Adnan Ahmed Razin, told the news agency that the estimated value of the contract exceeds 18 billion Iraqi dinars [$15 million].

“The cars, to be assembled inside Iraq, will include two models. It will include 15-passenger buses, with modern specifications, along with small double-compartment pickups, that will satisfy the need of the local Iraqi market for such cars,” Razin said.

The Company sold 15,142 saloons and pickups during the 2nd quarter of this year, generating revenues of more than 7 billion Iraqi dinars.

(Source: Aswat al-Iraq)

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