Iran Tire Industry Wary of Market Volatility

The tire industry is on the brink of a full-blown crisis as earlier state policies had for weeks cut off the sector’s supply of tire and raw materials; however, recently announced government forex policy has offered firms a glimmer of hope
Iran Tire Industry Wary of Market VolatilityIran Tire Industry Wary of Market Volatility
Tire imports have declined 56% in the first quarter of the current fiscal which started in March compared to the year before

With tire importers grappling with government bureaucracy, which has hampered entry of goods and impeded the supply chain, tires are soon to go scarce and just like many other commodities their prices are certain to skyrocket in the coming days.
The secretary for Iran's Tire Importers Association Mohammad Mirabedini says they have not been provided with foreign currency through an earlier state-established system and if the mechanisms are not overhauled, the country is likely to face a tire shortage crisis, reported Asre Khodro.
After US President Donald Trump reneged on the 2015 Iran nuclear deal, the US dollar exchange rate hit unprecedented highs, prompting the government of President Hassan Rouhani to step in and unify the USD rate at 42,000 rials on April 9. 


Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment