Iranian Carmakers Overreliant on Foreign Suppliers

Import of auto parts stand at the top of the list of goods imported into the country according to data published by the Islamic Republic of Iran Customs Administration. During the year ending in March, $2.9 billion worth of auto parts were brought into the country.
The number has observed a 137% year-on-year growth. Furthermore, auto parts have a 5.35% share in Iran’s total imports in terms of value.
Following auto parts are corn feed ($1.6 billion), cars ($1.45 billion), rice ($1.2 billion) and soybean ($943 million), as the goods making up the major imports of the country.
The appeal of imported auto parts stem from the low tariff rates on them which have made way for cheap and low-quality parts from China, India and other countries to grab a significant share of the market. Parts shipped in from these countries are available on the market at much lower prices than local products. The customs duties on such products stand between 15% and 20%.