Iranian car maker targets UAE market with automotive aftermarket show launch

The 1.8 litre Samand, the first car to be wholly designed and built in Iran, will be sold directly through IKCO's own new showroom in Dubai.

The company's assault on the UAE market moved into top gear at AAME - Dubai's annual international trade show for automotive parts, accessories, tyres, batteries and garage equipment - where the first of the cars to be seen in the Emirates is on display.

'We hope to sell up to 1,000 Samands in the first year. The cars are aimed at Iranian expats and will sell for around Dhs 37,000. The initial models will be manual drive. More models will be introduced into the market later,' said A R Ghane, Executive Manager, Automotive Components Technology General Trading, the spare parts division of IKCO which already has offices in Dubai.

'We know the car will be a best seller with Iranians living in the Emirates who will want to take it back to Iran and take advantage of the exemption from import duties which can be very high on international car brands.

'We will sell the cars through our own showroom that will include a workshop and service area. We plan to offer customers a complete package of sales and after sales services,' said Ghane.

IKCO, which has a 62 per cent market share in Iran, produced over 200,000 vehicles in the 11 months up to the end of January 2002. Output of various Peugeot models, assembled under licence, soared by more than 60 per cent to 70,000 vehicles. The company also produced 131,449 Paykans, a family car based on the obsolete 60s British Hillman Hunter. The company plans to raise production to 400,000 vehicles a year by 2005.