Results of a Survey on Satisfaction with Domestic Cars in Iran

According to the latest statistics, the lowest satisfaction with cars in Iran over the past six years was in 2015, while the highest satisfaction was in 2016. Based on the statistics published by the Iranian Standards Company, we have reviewed customer satisfaction with cars in Iran. According to the Inspection, Quality, and Standards Company of Iran, Iranian customers' opinions fluctuate significantly based on the quality of produced cars and the type of services received. The customer satisfaction index in 2016 was 674, while in 2015 it was 651. The latest results of customer satisfaction measurement from car quality in 2016 show that in the segment under 25 million tomans, the market is completely monopolized by Saipa. People have limited options to choose from, and in this segment, among only four cars, all based on the Paykan model, the highest satisfaction is with the Tiba, scoring 651 points, which holds 5% of the Iranian car market. In this segment, Saipa 131, 132, and 111 rank second to fourth with scores of 639, 623, and 602, respectively. These three cars together make up 25% of the Iranian car market. All three products are based on the Paykan car, whose technology dates back to 1980. In 2016, Renault announced that it intended to introduce the Renault Kwid in Iran as a replacement for the Paykan at a price of 25 million tomans, but due to various pressures, the company eventually changed its stance and announced that the price of this product in the Iranian market would be over 30 million tomans. The Renault Kwid has a global price between 5,000 to 6,000 dollars. According to the Inspection, Quality, and Standards Company of Iran, the main competition in the Iranian market is more in the segment of cars priced between 25 to 50 million tomans. In this segment, customers are most satisfied with the Pars Tondar (a facelift of Pars Khodro for the first-generation Renault Logan) produced by Pars Khodro, which scored 738 points in the satisfaction index in 2016. This car holds only 1% of the Iranian car market share. The Pars Tondar has now reached 60% local production in Iran. However, the second car on this list is a Chinese product from a not-so-prominent Chinese manufacturer called Great Wall. The second car that people were satisfied with in 2016 was the Welys C30, which is completely assembled with Chinese parts at the Khodro Sazan Rayin company in Kerman. This car holds only 0.1% of the Iranian car market and has managed to score 730 points. The third, fourth, and fifth cars are also made by Renault. The Tondar 90 produced by Pars Khodro, the Tondar 90 produced by Iran Khodro, and the Renault Sandero produced by Pars Khodro are ranked third and fourth. These three cars together hold about 5% of the Iranian market. Despite the suitable quality and customer satisfaction with these cars in the Iranian market, the biggest criticism of these products is their aging. These products have technology from 2004 to 2007 and have been phased out in Europe due to the end of their technological lifecycle, while the second generation of these products is currently being produced in Europe. Among the top 15 cars priced between 25 to 50 million tomans, only one car with an Iranian brand is visible. In the 11th position, the customer satisfaction for the Dena car is noted. This car managed to receive a score of 708 in customer satisfaction in 2016, which is an increase of about 28 points compared to 2015. In this segment of the Iranian market, the Tiba 2 and Saina produced by Saipa have the worst customer satisfaction. The Tiba 2 scored 657 and the Saina scored 654, marking the worst customer satisfaction in their price class. These two cars are based on the Paykan and only have a new appearance. Unlike the segment under 25 million tomans, where Saipa has a monopoly and customers can only comment on the cars of this company, in the 25 to 50 million tomans segment, this company experiences competition with a few limited factories, and it is clear that Saipa is even struggling to compete with Chinese manufacturers and other Iranian companies like Iran Khodro, as its products have the worst customer satisfaction. The 50 to 75 million tomans segment of the Iranian market is mostly monopolized by Chinese products, with the Changan CS35 having the best status in this segment with a score of 744. This product holds only 0.4% of the Iranian market. The 75 to 100 million tomans segment is mostly dedicated to imported cars, where the Kia Picanto, a small product from the Korean company, has achieved the first position with a score of 755. In global markets, the price of this car is under 10,000 dollars, while in Iran, it is over 75 million tomans. In the 100 to 125 million tomans segment, the Hyundai Veloster and in the segment of cars over 125 million tomans, the BMW 730 have achieved the best positions in their price segments with scores of 782 and 866, respectively.