Economy, Auto

Iran Plans to Produce 1.5 Million Cars p.a.

Iran has plans to produce 1.5 million cars in the current fiscal that started on March 21.
Iran has plans to produce 1.5 million cars in the current fiscal that started on March 21.

Deputy Minister of Industries, Mining, and Trade Mansour Moazemi, said local automakers produced 1.3 million cars during the last fiscal year that ended on March 20.

He said the ministry is setting the goal to manufacture 1.5 million cars in the current  year, Donya-e-Eqtesad, Financial Tribune’s sister newspaper reported.

Moazemi said, “95 million vehicles were produced globally… Iran has a meager share of q.57% that simply renders the country insignificant in the global car market.”

He compared last fiscal’s production rate with the year beforer saying “We witnessed a 41% year-on-year growth.”

This is while a chart published on the website of the International Organization of Motor Vehicle Manufacturers (OICA) shows that Iranian automakers produced 1,074,000 cars and 90,710 commercial vehicles in 2016, recording an 18.6% growth.

The same report by OICA says Iran’s auto industry had the largest growth rate internationally in 2016.

 “Carmakers only option, if they really want to improve quality and increase their share in the international market, is by collaborating with foreign firms.”

Iranian automakers have forged six joint ventures with foreign companies namely PSA’s Peugeot and Citroen, Renault, Daimler, Volkswagen, and Hyundai.

The senior industry official said that four conditions have been set for new joint venture deals, including a requirement for foreign firms to invest in Iran’s auto industry.

Other conditions include: 30% of the JVs’ production must be exported through the foreign companies’ distribution network, foreign firms help with technology transfer, at least 20% of the cars should be produced on localized technology, and finally uphold the ministry’s after sales service guidelines.

Add new comment

Read our comment policy before posting your viewpoints