Diesel Speeding Ahead
The Middle East market is among high priorities for
Saipa Diesel. About 95% of our exported products have ended up in
that market during the past years.
Alireza Ghamgosar, Managing Director of Saipa Diesel
Iranian carmakers are preparing to enter the competitive
international sphere at a time that the industry has undergone considerable
developments across the world. Such developments have given rise to a series
of threats and opportunities for our country.
A cursory look at important trends of the Iranian
automobile industry will show that its most prominent feature is being
overcome by the trend of globalization. This is evident both with regard to
car manufacturers and global markets.
Along its development course, our automobile industry must
inevitably determine its position in relation to international car industry,
especially that Iranís accession to the World Trade Organization will greatly
affect the Iranian economy and industry, including automobile industry.
1. How can Iranian automakers take part in the global
Stated briefly, adopting the following strategies can speed
up the march of the Iranian automobile industry toward globalization:
Unification of industrial automobile manufacture
capacities through more cooperation among domestic automakers;
Expanding cooperation with foreign automakers through
manufacturing joint products under license of renowned companies as well as
overseas marketing and sales activities and cooperation in such fields as
design and development;
Taking advantage of joint platform projects between
domestic and foreign automakers to elevate production scale and reduce costs
of research and production;
Bolstering parts manufacturing sector through encouraging
part manufacturers to cooperate with global manufacturers of auto parts
within a framework of producing under licenses and the like.
2. How does Saipa Diesel Company intend to achieve a more
active presence in global markets?
The company is considering plans for the entire global
production market the most important of which include:
Having a defined strategy to
delineate our position in the world, both at the present time and in the
Having a Certain Brand: Developing a brand and
protecting its identity is among our most important goals for profitable
Design and Research: One of our important plans is
to encourage design and research. Major components of this plan include
research and development (R&D), development of new products, changing
engineering design of major automobile parts, defining goals as well as
defining and developing products.
Production Process: This plan includes capability
for designing production processes, ability to design control and quality
assurance processes, ability to manufacture products needed for production
processes and taking advantage of pure production system.
Marketing and Sales: This is among our plans to
launch powerful marketing, provide widespread after sales services, and
embark on purposeful exports.
Procurement Cascade: A global automaker would need
a powerful network of part manufacturers to accompany it in an orderly
3. What is the volume of Saipa Dieselís exports? Where do
these exports go to?
Our automobile industry must inevitably determine its
position in relation to international car industry, especially that
Iranís accession to the World Trade Organization will greatly affect the
Iranian economy and industry
Saipa Diesel has increased exports during recent years, so
that, it exported 500 various kinds of trucks and trailers worth about $35
million in 2001. Developing exports has constituted one of the most important
strategies and plans of Saipa Diesel during recent years.
In view of its export activities during the past years as
well as conformity of its products to accepted standards of target markets,
the company has set its target markets as follows:
A) Middle East
B) African countries
C) Persian Gulf littoral states
D) Commonwealth of Independent States (CIS)
The Middle East market is among high priorities for
marketing at Saipa Diesel. About 95% of our exported products have ended up in
that market during the past years. We are going to take advantage of the
social concept strategy for marketing in the Middle East and similar markets.
One of the main characteristics of that concept is paying attention to the
demands and interests of the target marketís consumers.
4. Does Saipa Diesel observe environmental regulations and
The following are some of the major steps taken by Saipa
Diesel to observe environmental regulations and conform to the national
Choosing modern, state-of-the-art products conforming to
the latest European technologies and observing environmental standards
regarding pollutants emitting from their engines for the following purposes:
A) Reducing concentration of fuel pollutants emitting from
B) Reducing fuel consumption by modern automobiles
Discarding outdated F12 products and transferring
technology for modern products of Volvo including FH12, FM9 and Renault Midlum
conforming to the latest technological achievements of Europe.
5. Does Saipa Diesel have any plans for manufacturing new
makes of Volvo and Renault products?
To supply domestic needs and continue cooperation with
Volvo and Renault companies, Saipa Diesel is planning to manufacture the
vehicles shown in table 1. The necessary studies are currently underway in
FH12 (6*2) trailer truck
NH12 (6*4) trailer truck
FM9 (6*2) trailer truck
FM12 (8*4) truck
Badsan Midlum truck
6. Are Volvo and Renault trucks assembled as full CKD
(completely knocked down) or domestically manufactured parts are also used?
To maximize use of domestically manufactured parts in order
to take advantage of customs duties exemptions and reduce forex costs, the
company has taken measures as outlined in table 2.
Domestic Manufacture (%)
Meanwhile the approach taken by Saipa Diesel to increase
domestic manufacture of needed parts includes:
Supporting companies supplying vehicle parts (i.e. Kaveh
Khodro Company) in their efforts to establish quality assurance management
Continued assessment and audit of part makers that have
signed contracts through Kaveh Khodro and helping them upgrade their
processes and products
Reducing number and diversity of domestically produced
parts to boost quality
Inquiring about customersí viewpoints regarding domestic
manufacture of parts in order to increase quality and eliminating defects
7. Is the International Auto Exhibition useful for
automobile manufacturing companies, especially Saipa Diesel?
Tehranís International Auto Exhibition presents the latest
achievements of the automobile industry and related industries and presents an
annual report of the industryís performance. The exhibition also showcases the
sectorís capacities and investment opportunities for foreign companies.
A summary of the exhibitionís benefits runs as follows:
A review of performance of automobile and related
A place for consultation and exchange of viewpoints and
experiences between Iranian and foreign companies
Presenting technological capabilities and potentials
Familiarizing visitors with activities of automobile
manufacturing companies and their products
Attracting foreign investments to the part making sector
Demonstration of organizational thoughts aimed at meeting
the needs of the society