Hyundai Expanding Automotive Footprint

EghtesadOnline: The Tehran-based Soroush Diesel Mabna company has started production of Hyundai H350 vans through a production deal with the South Korean company.

News ID: ۷۷۹۱۰۷

11 September 2017

According to the company’s sales manager, Javad Khabbazi, the vehicle will be sold for 1.83 to 2.18 billion rials ($48,150-$57,360) depending on options, local automotive website Khodro Nevis reported.

The company offers 200,000km or 36-month guarantee on the vehicles in addition to a 10-year free after-sales service. The full version of the vehicle is reportedly priced at $53,000 in the international market.

In line with the government’s declared policy to renovate the public transport fleet, “Soroush Diesel will also offer fairly long-term loan schemes,” Financial Tribune quoted Khabbazi as saying.

The scheme is part of a trilateral agreement between Soroush, Iran’s Road Maintenance and Transportation Organization, and Eqtesad Novin Leasing Company.

As per the loan conditions, the customer should pay 540 to 654 million rials ($14,000 to $17,000) in down payment plus 60 monthly installments with the  interest rate at 10%.

The company is also offering a scrappage program: If the customer hands in an old vehicle for scappage, the interest rate on the loan will be cut to 6%.

The H350, known as Hyundai Solati in South Korea, is a light commercial van. The vehicle was first introduced at the 2014 Hanover Motor Show, aiming to compete with Mercedes-Benz Sprinter and Ford Transit.

It has a 2.5-liter engine mated to a six-speed manual transmission that powers the rear wheels. The engine produces 167 horsepower.

Founded in 2015, Soroush also produces Hyundai’s HD65 and HD78 light trucks in Salafchegan Special Economic Zone near Qom in central Iran. So far the company has produced over 2,200 units of the trucks.

The company has said it plans to export the trucks to Iraqi Kurdistan. According to the company CEO Mostafa Taheri, Soroush has clinched a deal with the Iraqis to supply 985 units of Hyundai trucks by next March.

Present in Diverse Spheres

The South Korean automaker is among the major global companies that have been able to secure a strong foothold in Iran’s huge auto industry.

Prior to tightening of international economic sanctions against Iran in 2011, Hyundai had a contract with Iran Khodro Diesel for producing trucks. Through the deal Hyundai Mighty and Chorus were manufactured. In August Hyundai renewed its ties with IKD.

Hyundai has always had a significant presence in Iran through auto imports, namely models like Santa Fe SUV and the smaller sedan Elantra.

In addition to imports, local automaker Kerman Motor has a production deal with the Korean company through which it is producing the Hyundai i10 and i20 models.

According to data published by the Ministry of Industries, Mining and Trade, 2,755 units of the two models were produced during the first four months of the current fiscal that started in March.