Citroen Spin-Off DS Not to Produce in Iran

EghtesadOnline: The exclusive distributor of DS Automobile in Iran will not produce cars locally for the time being, according to the company’s top official.

News ID: ۷۷۵۹۷۵

07 May 2017

CEO of Arian Motor Taban Daryoush Biria, DS’s local distributor, said, “Considering the low number of sales of the cars, there is little chance PSA Group (which owns the DS brand) will choose to assemble the cars in Iran for the time being,” Persian Khodro reported.

Biria also said Iran’s Ministry of Industries, Mining and Trade has ruled that the minimum possible production rate for cars should be 30,000 units per year.

“A lower production rate will force the manufacturer to raise the price to make production feasible,” meaning it would be more expensive for the car buyer, Financial Tribune reported.

One of DS conditions for launching a production line in Iran is that this will happen only when there is a significant rise in the local demand for its cars, said Biria.

The prospect of exporting locally produced DS cars to regional markets is also limited, since Arian Motor is not able to provide the required distribution network for neighboring Persian Gulf and CIS (Central Asia) markets.

Arian Motor is part of Arian Capital Management Processes and Structures holding which in addition to its automotive sector is active in real estate.

Six Models of DS

Arian Motor offers six models of DS cars including sedans, hatchbacks and SUVs produced by the French car maker. The models are priced in the range of $50,000 and higher.

The latest DS6 model was officially launched in Tehran in January.  When the car was initially released it was only available for leasing. It is priced at 214 billion rials ($61,000), more than double its foreign price.

The DS6 is a compact SUV powered by a four-cylinder 1.6-liter (1598 cc) gasoline engine that produces 200 PS (147 kW; 197 bhp) at 5800 rpm. It is claimed to accelerate from 0–100 km in 8.4 seconds. This model is expected to compete with the BMW x1 and Audi Q3. To sell Citroen’s premium DS brand of vehicles, Arian Motors opened a showroom in January in the northern Tehran district on Andarzgou Boulevard.

Meanwhile, the DS4 Crossback is estimated to cost around 1.79 billion rials ($45,300). It comes with a ride height 30 mm higher than the regular DS4 and the normal prerequisite for a semi-off-road model with butch styling.

DS Automobile on its official website has acknowledged Arian Motor as its exclusive distributor in Iran.

The company also operates as a dealership agent for Mammut Khodro (importer of Scania buses and trucks), Golrang Family Motor (importer of Hyundai cars) and Irtoya (importer of Toyota cars).

Additionally, Arian Khodro imports Mitsubishi cars and Chinese C&C trucks.