Economy, Auto

Iran Sweetens Offer to Foreign Automakers

Iran Sweetens Offer to Foreign Automakers
Iran Sweetens Offer to Foreign Automakers

Chairman of Iran's Institute for Trade Studies and Research says the Iranian government and parliament are working on new incentives to encourage foreign investment in the automobile industry, ISNA reported on Tuesday.

“Automakers around the world, EU companies in particular, want to return to Iran to make investment,” said Mohammad Reza Razavi, during a meeting with Japanese ambassador to Tehran Koji Haneda.

Representatives from trade firms affiliated to Suzuki and Nissan car companies were also present in the meeting.

The Iranian official described Iran’s auto market as a gateway to regional markets and called on Japanese companies to take the opportunity to set up joint ventures with Iranian companies.

He said the Iranian authorities have already been working on new incentives to encourage direct foreign investment.

The Japanese ambassador expressed hope that Iran and Japan could enhance cooperation in the auto industry.

The auto industry is seen as Iran’s biggest non-oil sector. It accounts for nearly 10 percent of the country’s gross domestic product (GDP).

The 2014 production statistics by the International Organization of Motor Vehicle Manufacturers (OICA) indicate Iran’s auto production increased by 46.7 percent in the 12-month period.

Latest data shows that Iran ranks 18th on the list of the world’s top auto manufacturers.

The figures show Iranian automakers produced 1.09 million cars and commercial vehicles last year.

Iran Khodro and Saipa account for more than 90 percent of the total domestic production in Iran.

Iran imported 102,000 cars during last Persian calendar year (ended March 20, 2015,) showing a 31% increase compared with the year before.