Economy, Auto

Iran Could Become MENA Automotive Hub

Iran Could Become MENA Automotive Hub Iran Could Become MENA Automotive Hub

The president of a multinational engine provider said Iran could become the center of automobile industry in the Middle East, had the sanctions not prevented the country’s progress in the field.

“Iran could be the center of automobile industry in the Middle East but, due to the sanctions, that has been postponed,” CEO of FEV Michael Wilhelm told the Research Institute of Petroleum Industry on the sidelines of the Ninth International Conference on Internal Combustion Engines and Oil Industry, IRNA reports.

However, “we are expecting a lot of projects that are being created here [in Iran],” he was quoted as saying by Shana.

The senior German engineer said what is good about Iran in comparison with its neighbors is that in Iran there are “very educated engineers” and that is one of the most important factors required to push the industry.

Wilhelm said Iran has production facilities and experience so “everything is available for a good industrial development”.

Iran held an international conference and exhibition on internal combustion engines and oil industry to woo foreign investments to develop the sector now that the international embargo on Tehran’s nuclear program has been lifted.

Exhibitors from 700 participants from 10 countries, including Germany, Austria, the Netherlands, France, Italy, India, China and South Korea, attended the conference and presented their latest products on the sidelines of the event.

Beginning on February 16, the three-day event was organized by the Iranian Society of Engine and RIPI. It is aimed at devising a strategic document on fuel, propulsion and environment in Iran, as well as promoting oil industry interactions and cooperation with the engine industry.

FEV is an engineering consultation company and engineering consultancy company. It is one of the world's largest independent service providers in the development of engines and vehicle technology with headquarters in Aachen, Germany.

Clients of FEV are all well-known vehicle manufacturers in the world. FEV is owned by the Pischinger family.

They design and develop engines for appliances, cars and commercial vehicles, but also for ships and locomotives—from the sketch to production.

The firm operates worldwide and offers engineering services for powertrains engines and transmission developments, and electronics and technologies required for new-energy, electric and hybrid vehicles.

FEV partnered Iran Khodro to produce the EF7 engine that uses 1.7 liters of dual fuel.

“There is a lot of work to do here in Iran. Iran has very good engineers and have very good facilities for production, so everything is available for a very good environment for automotive industry and development activities,” Wilhelm said.

"Since our company supports development of engines, transmission, etc., we look very positive into the future and we are expecting a lot of projects here in Iran where we can provide our services."

FEV's CEO noted that with the help of external companies, FEV can start such projects immediately and it takes a certain amount of time to get the Iranian capabilities ready to act more or completely independent, he said.

Wilhelm also said another two years are needed for Iran to be back on the level it was before the sanctions.