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Saipa has signed a cooperation agreement with
Chinese Changan Automobile Company to manufacture two sedan and SUV cars. The
agreement was signed in the Changan car factory, southern China, in the
presence of Eng. Shafei, the Iranian deputy industry, mines, and trade
minister, as well as the chairman of the board of directors of The Industrial
Development and Renovation Organization of Iran (IDRO).

On the sidelines of
the signing ceremony, the IDRO chairman emphasized the need to expand
cooperation between Saipa and Changan in the fields of research and development
as well as production of new cars.

He proposed that
Changan can directly participate in development of new Saipa cars.

Eng. Shafei added that Changan can participate
in the implementation of car manufacturing projects in Iran in three ways.
Investing in production of electronic components using high technology in Iran
is one of the ways, he said.

Another way of entering
the Iranian market can be through purchasing shares of Iranian Saipa Kashan,
Bonro, and Pars Khodro companies and manufacturing cars in these companies, he
added.

According to Eng.
Shafei, the third option for Changan to be present in the Iranian market can be
purchasing shares of Saipa Company in order to have a strong presence in the
Iranian market.

The Iranian deputy industry, mines, and trade
minister referred to statements of the president in Davos conference, and said
that the president invited foreign companies to invest in the Iranian car
market. “Approving a law for attracting foreign investment has created a
suitable atmosphere for foreign companies to invest in Iran. Changan should
benefit from this opportunity,” he explained.

The managing director
of Saipa Car Manufacturing Group, Eng. Saeid Madani, said in the meeting that
the Iranian administration has developed plans to turn the country into the
main car manufacturer in the region. The plans aim to reach the country’s car
output to three million per year, he added. Last year, Saipa exported 15
percent of its products, he said, adding that the figure should reach 30
percent by the next five years.

Madani went on to say
that each of the subsidiaries of Saipa Car Manufacturing Group, excluding Saipa
Kashan, has a foreign partner. The aim behind cooperating with Changan is to
produce cars in Kashan, which has the annual production capacity of 180,000
cars, he added.

Some 400 million
people live in Iran’s neighboring countries, the managing director of Saipa
noted. In no one of the neighboring countries, excluding Turkey, a renowned
carmaker is active. We will take the most advantage from cooperating with
Changan, the managing director of Saipa stated.

Madani further said
that Saipa and Changan can cooperate in designing, manufacturing, and exporting
cars, as well as launching joint ventures and supporting each other
technologically.

The managing director
of Changan Company referred to the company’s experience in manufacturing cars,
saying that the company is currently the largest car manufacturer in China,
accounting for 10 percent of the country’s total car production. The company
plans to increase its output to 6 million cars by 2020 and rank first among
Chinese carmakers, the official said.

 “Changan and Saipa
enjoy common ideas and plans in the field of car production. Saipa can be a
good partner for Changan thanks to its appropriate infrastructures in design,
development, and after sales sectors.”

“For the time being, Changan operates 27 production sites and
manufactures 25 models of car. It has launched joint ventures with large and
renowned carmakers, including Ford, Mazda, Peugeot Citroen, and Suzuki. It has
established design and development centers in Italy, Japan, and UK. The company
has targeted the international markets and sees cooperation with Saipa as one
of the ways to enter the international markets.”