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the SAIPA Group is continuing its steps to
become one of the top twenty automotive manufacturers in the world. In
the year 2003, we have successfully increased our market share an
unprecedented six market percentage pointS, from 32% to approximately
38%, while In regional markets, such as Bahrain and Syria, we are now
recognized as a key market player. As far as sales, revenues and
operating profit are concerned, the SAIPA Group once again surpassed the
record results of the previous year. At the present time, we have
the
most attractive and up to date product line up in our history and we
will vigorously continue our product ! offensive. We are now striving to
be present in every important market segment, with leading edge
products. Our brands are distinctively positioned and present the most
powerful portfolio in the Iranian market. No other manufacturer offers
such an attractive variety at comparable production volumes. The key to
our success is the ability to meet the requirements of our customers.
Demographics have been key to our strategy. With a market composition of
70% of the population under the age of thirty combined with economic
growth in excess of 7%, SAIPA has successfully entered into a number of
strategic alliances with global players so as to successfully develop
and capitalize upon major market segments. These include: |
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SAIPA is now the dominant player in the entry level segment of the market.
The combination of unique demographics and economic growth has translated
into the yearly entry of over 800,000 people into I the workforce. By
successfully capitalizing on our alliance with Kia (Hyundai Group), SAIPA,
for the first time in its history is now the dominant player in this
segment. SAIPA continues to develop the expanding M2 and M3 sector working
in joint cooperation with PSA- Citroen. In the more lucrative SUV and
luxury sector, our bottom line has been buoyed by the extremely I successful
launch of a comprehensive product portfolio of products from Nissan. Our
market success would not be complete without a review of our recent in-roads
in the commercial vehicle sector. The combination of topography (Iran's
mountainous terrain makes rail transport unfeasible in many instances) and
the implementation of a major fleet renovation scheme by the Iranian
government has resulted in the emergence of the Iranian commercial vehicle
sector as one of the largest markets in the world. Thus, the portfolio of
products offered by SAIPA has led to market dominance in almost every market
segment.
Therefore, as with our passenger car strategy, a key element of our success
has been to formulate and successfully execute strategic alliances with
first tier manufacturers. These steps include: The targeting of the lower
and mid-level section of the market with our company Zamyad. We are pleased
to announce that Zamyad's portfolio will now be complemented with the launch
of the IVECO Daily, a leading vehicle in its class globally, to be further
complemented by other products from the IVECO portfolio. The successful
development and expansion of our longstanding relationship with Volvo AB.
Now the market leader for vehicles in its class, our ability to effectively
capitalize upon this relationship has not only led to the ability to execute
several major fleet sales, but also to successfully pentrate regional
export markets. ConcomItantly, we have now successfully commenced the
Integration of ;
several key products from the sister company of Volvo, Renault V.I.
As can
be seen, we now offer virtually any customer a vehicle tailored to his or
her requirements. However. with a demand factor of one car for every twenty
five iranians, combined with the growing affluence of our . market, it is
clear that the requirements of our customers will become even more varied.
It is within this context that over the next three years we will be
launchinq several new models in conjunction with our alliance partners.
Furthermore, constant progress in terms of implementing our strategy is
further leveraged through close I interdivisional cooperation and
integration. Our sourcing and procurement company, Sazeh Gostar has
successfully been able to execute group wide exchanges of technology,
know-how and components, and has successfully dealt with several cross
divisional projects resulting in a number of significant savings and
efficiency enhancements. Our success can be witnessed by the tangible
recognition that the stock market has provided to our achievements. SAIPA,
now having the largest market capitalization of any company in the stock
exchange, is reflective of the fact that investors not only appreciate the
substantial strides that our company has made, but also to our potential.
ncluding engines, gearboxes, axles and other parts. |
