Saipa is predicting the Iranian market could reach up to three million vehicles annually should sanctions against the country be lifted.
Iran has endured decades of Western hostility as capitals from London to Washington and Paris view Tehran’s drive to enrich uranium as a possible pretext for developing nuclear weapons, but recent talks in Switzerland are raising genuine hopes of a breakthrough, perhaps as early as June.
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The country has benefited from a limited thaw in the tough sanctions regime, which some have speculated could lead to the automotive sector benefiting by up to US$500m, although this figure could be dwarfed if the nuclear talks succeed.
“The Iranian market is a good market and people around the world understand the automotive market is thriving,” Saipa communications told just-auto from Tehran.
“It will be around 2m or 3m units per annum, they need 2m or 3m cars within a decade. If sanctions are relieved, automakers should think maybe this [is] a sizeable market. All of this need can’t be supplied by automakers in Iran, so some of them should be supplied by imports.”
Saipa currently partners with Kia, Citroen and Brilliance, but has been obliged to turn to Russian and Chinese companies to supply some parts as the international community tightened the sanctions screw in light of its growing alarm surrounding what it believed to be Iran’s nuclear ambitions.
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By GlobalData“Of course with sanctions relieved, there are [potentially] foreign companies coming to Iran – cooperation and collaboration between Saipa and foreign countries would be in a better situation,” added Saipa communications.
“Let us be optimistic because it is better for the world, better for all of us. I know there are some countries whose interest is not aligned with that interest of Iran – they are trying to work for their own interest.
“In Iran, the new cabinet is thinking about improving the relationship between Iran and other countries, especially Western countries.
Of the 1.4m Iran market, Saipa produces around 700,000 units, with some 50,000 models destined for export to countries such as Iraq, Azerbaijan and Egypt.
“But export is a bit difficult because after three decades of sanctions, we have not improved innovations,” said Saipa communications.
