After the Ministry of Industries, Mining and Trade said it is “impossible” to specify a date for car imports, experts are wondering whether the ministry is serious about the issue.
While rumors have circulated about the ministry confirming the import of French, Japanese and South Korean brands, as well as the domestic importing companies, market players and experts are cynical about any car import getting underway anytime soon.
Obstacles facing the implementation of import regulations are so obvious that the spokesman of the ministry said, “Apart from the Industries Ministry, many other institutions are also involved in the car import process, such as the Central Bank of Iran, the Islamic Republic of Iran Customs Administration and the Institute of Standards and Industrial Research of Iran, etc. Therefore, it is impossible to announce a precise date for car imports and we can only say it’s a work in progress.”
Omid Qalibaf added that car imports need €1 billion and CBI is planning to provide it in a positive environment, implying that most likely it would be allocated.
Dariush Badie-Sabet, an automotive expert, stated that the promises of the previous government have made the country's market pessimistic about the Industries Ministry’s directives.
"These promises have been repeated by the current government, and the authorities boldly issue directives because no one is asking them to guarantee the fulfillment of those promises," he added.
Commenting on the complaints of some officials with the automotive industry’s performance, Badie-Sabet said, "With the expression of these complaints, automotive managers were expected to seek help from economic experts to solve the crisis and at least find the root of the problem. But unfortunately, we have not witnessed any positive actions in companies to improve the quality of popular cars."
In fact, market players complain that the Industries Ministry did not seek their opinion regarding car import regulations.
Asked how important these complaints are, he said the Industries Ministry’s haste in solving the problems of the car industry and market, and increasing public satisfaction has made the stakeholders and experts disagree with car import regulations.
The expert emphasized that the ministry not only failed to solve the problems, but has also made market players and experts believe that the ban on car import was only lifted on paper.
Responding to the comments of some officials about negotiations held by importers with foreign companies, Badie-Sabet said, “Such news should be announced by representatives of companies and the Automobile Importers Association to the media and people to ensure its authenticity. The active presence of the association in a professional manner can prevent the presence of fake companies and the cost inflicted by them.”
Earlier, the Iranian Parliament had announced that the Minister of Industries, Mining and Trade Reza Fatemi-Amin will be impeached because of his poor performance in the automotive industry, as well as in the fields of steel, mines and market regulation.
Economy Car Import’s Regulations
Regulations for car imports, approved by the Council of Ministers on August 17, were announced by First Vice-President Mohammad Mokhber on Aug. 25.
Although the price of imported cars has a ceiling of €20,000 freight on board and a maximum of $1 billion will be allocated in foreign currency for the purpose, cars under €10,000 FOB enjoy priority.
Meanwhile, the Ministry of Industries, Mining and Trade has also been obliged to produce economy cars worth up to €10,000 to grab a share of these imports, Donyaye Khodro reported.
As per the regulations, car imports in trade and industrial free zones are limited to hybrid or fully electric vehicles, and only certain models will be numbered in these zones. Importers are responsible for investing in and setting up the charging stations.
“As the details of the fiscal 2022-23 car import regulations required government coordination, it was proposed and approved by the Council of Ministers last week,” Economy Minister Ehsan Khandouzi said.
All imported cars will be offered on the Iran Mercantile Exchange.
One of the conditions included in car import regulations is the determination of commercial profit. First, the commercial profit will be collected by the customs office and after the sale of imported cars in IME, the difference in commercial profit will be determined.
The amount of this commercial profit will be approved by a joint committee comprising the representatives of the Industries Ministry, the Economy Ministry and the Plan and Budget Organization.
