IKCO Adopts New Approach towards Export Markets
Iran’s largest car manufacturer, Iran Khodro Industrial Group, (IKCO) has adopted a new approach towards exports to certain countries. Having achieved a comprehensive understanding of the strengths and weakness of many export markets across the world, the car manufacturer has put exports to these countries at the top of its priorities.
IKCO CEO, Hashem YekeZare, cited exports of products with competitive pricing as the main strategy of his company and added that with the aim of expanding export markets, IKCO is seeking to promote its current sites abroad and also to make operational its new site in Azerbaijan which is under construction with the Azeri investment and Iranian engineering knowhow.
He went on saying establishing new sites abroad is part of a plan to increase IKCO’s profits from the tariff advantages of the target markets.
“To have a continuous presence in the export markets, Iran Khordor has given priority to exporting certain products to certain markets, giving variety to the export production portfolio and assembling different models of vehicles in IKCO’s sites abroad,” he noted.
Elsewhere in his statements, YekeZare said one of the main goals which IKCO is pursuing in the new chapter with the international partners is to gain a share in the vehicle markets, auto parts and particularly in meta-casting feild.
He also added another main strategy of IKCO is to establish new sites abroad by the target countries’ investment and IKCO’s engineering knowhow.
“With the new approach, Iran Khodro company has already managed to lower the investment risks of its foreign sites,” he added.
The CEO of Iran’s largest car manufacturer also referred to the underway project to establish a site in the neighbouring Azerbaijan and added given to the popularity of IKCO’s Dena, Samand and Runna models in Azerbaijan, the company has decided to produce the models in Azerbaijan. “Other models will also be added the production portfolio of the site in the future.”
YekeZare also stated IKCO’s site in Azerbaijan is under construction on a vast land in the industry center of Neftchala with a production capacity of 10,000 vehicles each year. In the second phase of the project, the site is going to produce commercial vehicles to renew the transportation fleet of Azerbaijan.
“Azerbaijan will turn into an export hub for the regional states for IKCO as soon as Azerbaijan’s site becomes operational,” he said.
The CEO also referred to the CBU export of vehicles to other target markets and added IKCO has also given priority to the expansion of its markets in the traditionally friendly states like Iraq.
“Iran Khodro has also adopted new measures to expand its after-sale services in Iraq with the goal of promoting communication with the customers and offering best-quality services to them. Meanwhile, we are seeking to promote our auto parts supplying in the country,” Yekkeh Zare added.
He referred to IKCO’s CBU exports to the Commonwealth of Independence State and said Armenia is among the target markets of Iran Khodro. “Having access to CNG and its low price in the country are among the main reasons behind IKCO’s hybrid vehicles’ popularity among the Armenians.”
YekeZare also said with receiving Euro 5 standard certificate, IKCO will put export of its vehicles to CIS states including Belorussia and Kazakhstan at to the top of its priorities.
He finally stressed with the development of new products and participation in joint projects to establish new sites abroad, IKCO is seeking to play a leading role in the international markets and gain the appropriate share.