The Status Quo: The flourishing of Iranian auto industry saw a turning point in 1992. The movement first started in Iran Khodro. Before that, the auto industry was involved only in assembling parts, while we are now designing and manufacturing auto parts domestically. This movement needs perseverance. Many see the development of Iranian auto industry as a threat to their vested interests and, from time to time, attack it directly or indirectly.

Pars Khodro: Pars Khodro is an affiliate of Saipa Auto Manufacturing Group. The plans we have drawn up for Pars Khodro are in line with the development programs for auto industries as a whole: We are determined to build most of the production chain which Saipa demands for its auto manufacturing function. The new wave in auto manufacturing started in Pars Khodro later as compared to Saipa or Iran Khodro. The company’s performance in the past was not successful, since it was mostly limited to assembling imported parts.
Today, development programs for Pars Khodro reach far beyond the company’s present operation. We have planned for the production of the company to reach 120,000 vehicles per year. Next year, the company should raise its production to 50,000.
While endeavoring to offer our products at lower prices, we are also making effort to raise the quality. Since 1992 the ability to absorb foreign technology has been developed to a large extent.
Some main vehicles manufactured by Pars Khodro are Nissan Patrol, Nissan Pickup, Sepand II and Sepand PK. The company will further diversify its products in the futrue.

Price and Quality: In comparison of car prices in Iran and abroad, let me note that countries adopt two price systems: The price of cars for domestic use and the price of cars for export to other countries. For us, the criteria for comparison should be the former price, rather than the export price. As far as domestic price is concerned, Iranian cars are sold to consumers much cheaper than foreign countries. The point here is that the “purchase power” of consumers in European countries, for example, is higher than Iranian consumers.
Regarding the quality, a certain model should be used for comparison of Iranian cars with foreign types. Many conditions should be considered while making such a comparison. For example, a Paykan does not enjoy a high quality, but we should not forget that other Iranian products are no better than that! I do not believe that Iranian cars are of the highest possible quality, but we should define a model before discussing the issue.

Relative Advantages of Auto Industry: Low-priced energy is an advantage for all Iranian industries. “High potentials for employment” is a major advantage of our auto industry. It is the most “living” and “progressive” industry in the country, which has had a positive impact on other industries.
However, I do not think there is low-priced labor here, because productivity is not high as compared with the labor in some other countries. One difficulty is that the manufacturing activity is not supported by the system. In such an environment, many people use their capital for trade, which is safer and tax-free.

Import of Cars: Here again, we should compare our country based on a certain model with others. For example, in Korea, 2-3% of total domestic production is allowed to be imported into country. I totally agree with this level, but I am totally opposed to allowing a large number of cars to be imported so that lots of dealers would make profits out of car business, while the nation is bearing losses.