Domestic Economy

Call for Integrated Auto Industry Policy

Call for Integrated  Auto Industry PolicyCall for Integrated  Auto Industry Policy

Minister of Industry, Mine and Trade Mohammad Nematzadeh called on Friday for integrated policies to be adopted on car manufacturing and auto parts industry, saying both industries must be given the same degree of priority.

“The problems facing the auto parts industry, which is an important base for car manufacturing, have to be solved,” IRNA quoted the minister as saying.

Pointing to the importance of research in the development of industries, he said, “Academic research has proven to be vital in the development of industries and it is an area that has been largely overlooked in our industries including car and auto part sectors.”

New methods of designing and engineering can help auto part industry develop.

  Cooperation With Foreign Carmakers

Iran’s two giant car manufacturing conglomerates, Iran Khodro and Saipa, have reached an agreement to cooperate with foreign carmakers, ISNA on Friday quoted an official involved in negotiations as saying without identifying him.  

“Foreign carmakers have accepted Iran’s preconditions including investment in the mainland, domestication of spare parts production, and export of products from Iran,” he said. “An initial agreement with a foreign side has been reached and we are working to overcome obstacles such as those regarding banking transactions,” the official said without elaborating on the foreign side.

Iran’s auto industry has been a major casualty of western sanctions imposed over Tehran’s nuclear energy program.  Total car production was 1.6 million in 2011, but it halved two years later after the US, EU and UN gradually intensified economic sanctions.

France’s PSA Peugeot-Citroen and South Korea’s Hyundai left the country altogether, while Renault continues to export parts and assemble cars in Tehran.

The auto sanctions were lifted earlier this year after an interim nuclear agreement was reached between Iran and the six world powers known as the P5+1. With the nuclear talks still ongoing to hammer out a final accord, prospects are bright for the industry.

To revive its manufacturing capacities and attract foreign investors, Iran held the 2nd International Auto Conference earlier this month. The event was attended by major European carmakers such as Mercedes-Benz, Volkswagen, Volvo, Fiat, Skoda, Renault and Peugeot.