Carmaker Shutters Down

EghtesadOnline: Production lines at Diar Khodro, an independent auto producer, have been shut down over the past two months, local automotive media reports said.

News ID: ۷۷۴۶۲۳

14 March 2017

According to Persian Khodro, the company’s production lines had zero output from January 20 to February 18.

During the same period last year the company produced 52 cars and 9 pickup trucks. Diar Khodro had a meager share in ambulance and firefighting vehicles production too. The production line for these vehicles has also been halted.

Diar Khodro was collaborating with two Chinese auto companies BAIC (Beijing Automotive Industry Company) and Great Wall. It produced BAIC electric car Sabrina and several other models locally. The company also manufactured half a dozen models of Great Wall SUVs and pickup trucks, Financial Tribune reported.

With the growing market for Chinese SUVs in the saturated local market, the company’s low and declining output and the halt in its production line looks out of place.

The stoppage comes amid other Iranian car producers reporting high  growth in production in recent months with the International Organization of Motor Vehicle Manufacturers (OICA) reporting that Iran’s auto industry had the largest growth rate internationally in 2016 compared to all countries, including China.

A chart published on the organization’s website shows that Iranian automakers produced 1,074,000 cars and 90,710 commercial vehicles in 2016, recording an 18.6% growth.