IKCO-Datsun Story Begins/Low Cost Japanese on the Way to Iran

Khodrocar – Short after BARJAM was executed, Right at the time when famous automakers where elected one after another for mutual cooperation with domestic automakers, Datsun name also came up as IKCO’s partner. But it did not go any further than that until yesterday that Hashem Yekezare, IKCO CEO, announced the probability of the finalized IKCO-Datsun deal by the end of the year. Yet Datsun is an unknown brand in Iran.

All about Datsun

Datsun or as Japanese call it: Dattosun, is one of Japan’s eldest automakers that came to life back in 1931. It was taken over by Nissan in 1934 so it replaced Nissan nameplate in export markets until Nissan decided to defunct the brand in 1986. By the very same decision in 2013, the name Datsun came back to life but now with a new description, "the brand for low-cost vehicles manufactured for emerging markets.”

Datsun was present in Iran as well but it was not so well known. Products imported to Iran were 720 series light duty pickup trucks and sedans known as the J160 and B180 all dated back to the 1970s. No other product could make Datsun immortal in the mind of the Iranians back in those days, none but the 240Z model, a long nose sport coupe I6, the grandfather of the 370Z sport coupe of Nissan today.

What Datsun model have a better chance of winning Iran’s Market?

After the cooperation between these two automakers was announced it was clear that at least one, or maybe more models are going to be domestically produced here at IKCO production sites. What which model is going to win the production prize?

Current Datsun production line holds 5 different vehicles. GO, GO+, redi-GO, ON-DO and MI-DO. All using small displacement economic engines from 0.8 and 1.0 liter to 1.2 and 1.6 liter of displacement. So there is no limitations in Iran for these engines. Vehicles are made with simple design and material and the option level is so low that they can make good fortune in Iran’ automotive market.

Two almost identical models the ON-DO and MI-DO were specifically designed and build with 1.6 liter I4 engine for the Russia’s market and are rebadged as Lada Kalina under the brand name of Auto VAZ. Therefore chances of the two vehicles to be produce in Iran is almost close to none specially having in mind that not so far back, Auto VAZ declared its activities as a loner.

Among other 3 vehicles left to choose for IKCO, one is the 5 to 7 passenger 5 door MPV known as the GO+. Needless to say MPVs are quite useful but in Iran, the experience has always shown otherwise. MPVs are destine to lose before even entering the market so that leaves IKCO only two options, two only options that are actually quite adequate for Iran’s car market.

GO and redi-GO are both compact hatch backs with the size of a Peugeot 206 or MVM 110 (Chery QQ). Small economic engines, low fuel consumption badged with a Japanese brand logo, Factors that can attract the potential buyers of the Chinese made vehicle, from the very same price segment.

GO and redi-GO are priced roughly 5060 and 3741 US Dollars. Doing a very simple math considering the US Dollar price roughly at 3860 IRRs in Iran, leads to pure price tags of 195 million and 145 million IRRs for GO and redi-GO models respectively. Considering production costs and other dozens of extra costs to launch a production line for IKCO, final pricings of the two would end up in the below 350 million IRRs price segment and will face under 400 million IRRs rivals of the SAIPA Group, with their heads held high.

Yet it seems remote if IKCO could or even would want to do the very same math to keep the price range of the two at a reasonable level.

Khodrocar Reporter: Mostafa Anisi