Saipa Recognized as the 'Lowest Quality' Iranian Brand in the Automotive Market

According to the latest report by the Quality and Standard Inspection Company of Iran, Saipa has been identified as the most defective car manufacturer in Iran, with an average of 5.1 technical faults per vehicle. The report evaluates the quality status of passenger cars from the customers' perspective. The customer satisfaction measurement report for the year 1394 (2015-2016) examines the initial quality status of vehicles and the Initial Quality Study (IQS) index, which indicates the number of defects observed in every 100 vehicles in the first three months of ownership from the customers' viewpoint. Over 145,000 Iranian customers were interviewed for this research. The IQS index for the year 1394 shows an average score of 432, meaning 4.3 defects were observed in each vehicle delivered to Iranian customers after three months of ownership. This statistic indicates that, on average, the IQS index has decreased by about 7.5% compared to the previous period. Similar studies in Japan, China, and the USA in 2015 indicate that the IQS index for these countries is 80, 108, and 112, respectively. In this study, a lower score on this index indicates better vehicle quality; therefore, the 7.5% decrease in the IQS index suggests an increase and improvement in the initial quality of vehicles in 1394 compared to the previous period. According to this report, about 30% of the defects observed by customers relate to body and assembly, 50% relate to vehicle parts, and 20% of the issues raised by customers pertain to design. In the body and assembly section, the main observations were related to misalignment of doors, while in the parts and design sections, the most frequently observed defects were related to defective engine parts and high fuel consumption. The report also ranks the brands of vehicles currently in circulation in Iran. Among them, Lexus models ranked first for the best quality in 1394 (2015-2016), followed by BMW, Toyota, and Alfa Romeo in second to fourth places. Saipa has the worst status among Iranian manufacturers. In this report, vehicles produced and assembled in the country under foreign brands are categorized under their main brands; for example, the Suzuki Grand Vitara is categorized under the Suzuki brand after being produced by Iran Khodro. The report also presents the best vehicles in terms of initial quality from the customers' perspective, categorized by vehicle type. In the small hatchback category, the best vehicle is the Toyota Yaris; in the crossover segment, the BMW X3; in the medium SUV category, the Kia Sorento; in the compact SUV category, the Lexus NX 200; in the medium hatchback category, the Alfa Romeo Giulietta; in the premium compact sedan category, the Toyota Yaris; in the compact sedan category, the Toyota Corolla; and in the medium sedan category, the best vehicle is the Toyota Camry. Furthermore, the overall IQS score is analyzed by manufacturers, with German brands being rated as the highest quality, followed by Japanese car brands. The report indicates that over 38% of the variety of vehicle models (referring to the diversity of models offered, not production numbers) in the Iranian market is related to Chinese brands, followed by French brands in second place, and Korean, Japanese, Iranian, and German brands in subsequent positions. According to another report from the Quality and Standard Inspection Company of Iran recently published, 70% of passenger cars produced in Iran fall into the lowest quality category, earning only one star out of five in quality. 22% of the produced passenger cars have only received two stars out of five, and 8% have managed to achieve three stars out of five. The production of Chinese cars in Iran has intensified recently, but these vehicles mostly rank at the lowest quality levels. Only six models from these products have managed to earn two quality stars. Notably, none of the produced passenger cars have been able to achieve four or five quality stars. In fact, the highest quality domestic passenger cars have only managed to earn three stars out of five. Among the vehicles that have received three quality stars, only two, the Tondar 90 and Rana, with high domestic production and a price below 50 million tomans, have achieved three quality stars. Other vehicles that have managed to earn three quality stars include the new Mazda 3 assembled by Bahman Group, priced over 100 million tomans, and the Kia Cerato, priced over 75 million tomans and produced by Saipa. The situation of domestic vehicle quality is so critical that many domestically produced cars in Iran, such as the Pride and Peugeot 405, have a more critical status compared to these Chinese products in terms of quality. A notable point in the report from the Quality and Standard Inspection Company of Iran is the severe decline in quality of Peugeot products in Iran, with the best-case scenario being that the Peugeot 206 has managed to earn two quality stars. The 206 is currently over 60% localized. Aside from the Peugeot 206, the Dena, another domestically produced vehicle with high localization, has also managed to earn two quality stars.