SAIPA Ahead of Production Plan

EghtesadOnline: SAIPA Automotive Group, in addition to completing the deficient cars, has produced 20,845 vehicles in the first fiscal month (March 21-April 20), according to SAIPA Automotive Group's deputy for comprehensive production planning.

News ID: ۷۸۷۸۵۳

10 May 2022

Masoud Parvin also stated that the company is 3% ahead of the production plan submitted to the Ministry of Industries, Mining and Trade, the news portal of Donyaye Khodro reported.

"The incomplete vehicles’ inventory of SAIPA Group, which was about 58,000 units on April 20, 2021, reached 31,000 units on April 20 2022,” he said.

The official noted that SAIPA Group should have produced 20,134 units during the month under review.

"All departments of SAIPA Automotive Group are making endeavors to increase production while reducing the number of incomplete cars to until the point where there are no incomplete cars in the company’s parking lots," he said.

The official emphasized that the number of incomplete cars in the first fiscal month has decreased by 47% compared with last year’s corresponding period.

"According to statistics, a significant increase in production was recorded in the second fiscal month [started April 21], such that production reached 1,700 units on May 7; stabilizing this trend is on the agenda of the company," he said.

"From the beginning of this year to May 8, more than 35,000 units of various products have been produced in SAIPA Automotive Group, of which 90% [about 32,000 units] have entered the market directly and sold."

Parvin also stated that the supply of cars to the market will lead to three things: car quality growth, cost reduction and increasing supply of cars’ delivery to customers.

"From the beginning of the [new fiscal] year [started March 21] to May 8, 32,000 units entered the market directly and about 19,000 deficient vehicles were completed. Therefore, 51,000 vehicles were ready for sale, which is a new achievement," he said.

Plans to Meet Car Demand Outlined

The Ministry of Industries, Mining and Trade plans to meet car demand by placing imports and higher production on its agenda, the head of the ministry’s Automotive Industry Office said.

“In the current fiscal year [March 2022-23], 1.6 million vehicles will be produced, of which 1.4 million will be based on domestic platforms. Increasing the production is the most important short-term strategy, provided sanctions don’t trigger new developments,” Abdollah Tavakkoli Lahijani was also quoted as saying by IRNA.

The official noted that rising car production will help eliminate car lotteries, such that the lottery for SAIPA’s Shahin has been cancelled.

“Iran’s two largest automakers are now working to produce economy cars and a consortium of component makers has been formed to assist the initiative,” he said, while pointing out that supply chain financing will reduce the automakers' overhead costs.

Lahijani said promoting direct purchase from top-tier manufacturers, designing new cars, reducing logistics, increasing cooperation between carmakers and forging synergies could prepare the ground for the rapid production of economy cars.

“Automotive standards are not difficult to uphold and they are being observed in the new platforms,” he added.

The new platforms have been designed in a way that the enforcement of standards help lower prices when the mass production of cars begins.

According to the official, the Trade Promotion Organization has studied potential export markets and the vehicles built on the four main platforms will be exported to target countries.

“The Fourth Industrial Revolution has helped develop the automotive industry with the expansion of the four major fields of electrification, connected cars, self-driving cars and shared transportation,” Lahijani said.

“At every turn, some new actors emerge and for countries like Iran and domestic automakers, this is a historic opportunity to have a say with the help of knowledge-based companies.”

Abolition of Car Lotteries Starts with Shahin

SAIPA Group has started the sale of Shahin from April 19, without holding a car lottery, in response to high public demand.

Accordingly, the delivery time of this car is a maximum of 90 days and in case of a delay, as per the contract, a compensation equivalent to 36% of the annual profit (3% monthly) will be calculated on a daily basis.

Shahin can be considered the first positive step of SAIPA to repair its reputation after years of Pride production and is considered a turning point in the automaker’s history, the news portal of Donyaye Khodro reported.

Shahin was designed at a time when the Iranian car industry was facing tough US sanctions and problems related to supply chain and car manufacture.

This showed SAIPA's determination to produce a modern car with a completely different design. It intends to further incorporate changes and updates in Shahin and the Aria Crossover.

SAIPA's main efforts could be seen in Shahin that complies with safety standards, including airbag, crash testing and pedestrian collision standards, which have been obtained from a reputable European institution. In fact, it is the first Iranian car manufacturer to fully show the development and safety features of Shahin by publishing videos and results of Shahin crash and airbag tests.

Shahin uses a turbocharged M15GSI engine. The base version of this engine had previously been used on SAIPA X 200 platform products (Tiba, Saina and Quick), but to fit the Shahin’s weight of 1,250 kg, some parts have been replaced, modified and upgraded.

The car’s engine is also equipped with electric throttle, VVT system and Euro 5 emission standards that ensure lower fuel consumption and vibration with more acceleration and power.