Economy, Business And Markets

Carmakers Post 70% Growth

Carmakers Post 70% GrowthCarmakers Post 70% Growth

More than 722,300 cars were manufactured during the first 8 months of the current Iranian calendar year (ended November 21), indicating 69.8% growth compared with the same period last year, iribnews reported.

The bulk comprised of 612,818 sedans, demonstrating 69.7% increase. According to the report, more than 97,807 pickups, 11,242 trucks, 362 coaches, and 96 mini-buses were manufactured by the Iranian carmakers in the 8-month period.

The country produced a total of 630,639 cars in 2013, which showed a 25.6% decline compared to 2012, largely due to western sanctions imposed on Tehran over its nuclear energy program. The auto industry is Iran's second largest industry after oil and gas, being recognized as an engine for other industries and having a significant role in boosting the economy and generating revenues.

Based on the 20-Year Vision Plan (ending in 2025), the country should produce 3 million cars per annum, out of which 1 million should be exported. The plan also clarifies that the country should annually make as many as 120,000 commercial vehicles. If the plan's objectives are fulfilled, the auto industry would account for at least 4% of the gross domestic product.

In line with the Vision Plan and the Five-Year Economic Development Plans, Iran is establishing the third auto manufacturing hub in the southeastern port city of Chabahar. So far, countries such as China, South Korea, and Oman have expressed their interest in investing in the new car manufacturing hub.