Economy, Business And Markets

Int’l Auto Confab Next Week

Int’l Auto Confab Next Week
Int’l Auto Confab Next Week

The 2nd International Iranian Auto Industry Conference, the IAIIC 2014, is scheduled to unveil the domestic auto industry’s new strategy, which defines the plans in line with the 2025 Vision Plan as well as the lucrative investment areas in the sector, IRNA reported.

The main elements of the industry’s new strategy include enhancing the quality of domestically manufactured cars, diversifying products, and promoting cooperation in the development of carmaking platforms, said Sassan Qorbani, the secretary of IAIIC 2014.

The two-day international conference, which will kick off on December 1, will also provide the participants with the latest regulations for foreign investment in the auto industry as well as the corresponding guarantees for the investors.

Based on the report, the conference has been very well received by foreigners as 70 participants from France, 62 from China, 58 from Turkey, 47 from South Korea, 37 from Japan, 31 from Germany, and 21 from Italy will attend the event, in addition to participants from Taiwan, Austria, Spain, Sweden, Russia, Ukraine, US, Belgium, and Portugal.

Qorbani added that a final agreement in the nuclear negotiations between Iran and the P5+1 (five permanent members of the United Nations Security Council plus Germany) on November 24 could have a positively impact on the outcome of the conference, as even American automakers were expected to take part. Meanwhile, Qorbani added, the 15-month nuclear negotiations have already improved Iran’s global image, and many countries are now waiting for a final agreement in the next seven months so that they can officially enter Iran’s car market. Major automakers stopped supplying Iran with auto parts or raw material following the tightening of anti-Iran sanctions in the past three years.

The auto industry is the biggest non-oil sector across Iran’s economy and constitutes around 10% of the GDP. The industry witnessed sizeable growth during the decade from 2001 to 2011 due to an increase of the government support and the absence of international rivals.

Most IAIIC 2014 participants will arrive in Tehran a few days ahead of the 9th auto parts international exhibition in which more than 440 foreign companies as well as 345 Iranian exhibitors are expected to attend. The IAP is considered the biggest exhibition of its kind in the Middle East, showcasing parts, equipment, services, and car accessories.  

Market analysts say a combination of observations on IAIIC 2014 and IAP 2014 will give the foreign participants and investors a better assessment of the great potentials of Iran’s car market. The mostly European delegations have also expressed interest in exploring Iran’s third auto manufacturing hub, which is to be built near the southeastern port city of Chabahar. The new car manufacturing zone, located in Chabahar free trade and industrial zone in Sistan-Baluchestan province, has already attracted the attention of industrialists from countries such as China, South Korea, and Oman as some of the potential future investors.