Economy, Auto

Auto Cooperation Conditions Outlined

Auto Cooperation Conditions OutlinedAuto Cooperation Conditions Outlined

Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh has outlined four conditions that must be observed by foreign auto companies wishing to set up business in Iran. Firstly, the firms are required to observe the regulations on foreign direct investment while maintaining at least a 50% partnership, though in some cases FDI may be more than 50%, IRNA reported.

Also, foreign automotive firms will have to export at least one-third of the products manufactured in Iran. This obligation, will in turn, result in the improvement of product quality. Next, the vehicles manufactured in Iran must be on par with the required emission standards and collaboration must also focus on joint efforts in the realm of engineering and design.

Nematzadeh noted that negotiations with a German company have been fruitful and three projects will be finalized by the end of the current fiscal year (March 19).

The official, however, did not mention the name of the German firm.