Economy, Auto

Breaks Pulled on Auto Exports to Iraq

Breaks Pulled on Auto Exports to Iraq Breaks Pulled on Auto Exports to Iraq

The export of Iranian cars to Iraq has stopped due to poor quality, said an Iranian lawmaker on July 19.

Majlis Industries and Mining Commission hosted representatives of the Industrial Development and Renovation Organization and officials from Iran's largest carmakers Iran Khodro Company and SAIPA.

Previously, a large part of cars made in Iran were exported to Iraq but it seems that Iraq recently updated its regulations on car imports, which are more strict than before and do not allow substandard Iranian cars to enter the market, Mehr News Agency quoted Abdollah Rezaeian as saying.

Iraq, considering its political and economic links to Iran, was the largest export market for Iranian vehicles. In recent years, Iranian-made cars such as Kia's Pride and IKCO's Samand and Peugeots have been bought by Iraq.

SAIPA exported 135,000 vehicles to Iraq, during 2010-15, selling the most number of cars in the Iraqi market.

Many MPs criticized the quality of locally-made cars, to which IDRO's representatives responded by saying that the organization was working on car quality improvement.

Rezaeian noted that the carmakers are to prepare and submit a comprehensive report on the auto industry and the new contracts that are being finalized. The commission suggested that new contracts be signed with different countries to avoid potential problems under critical political situations.

Rezaeian added that it was announced at the meeting that none of the new auto contracts has yet entered the executive stage.

"It was stressed that all contracts should be based on transfer of technologies and automakers should use local workforce while tackling the slump in the auto market by increasing exports," he said.