Economy, Business And Markets

Gov’t Plans to Merge Small Carmakers

Gov’t Plans to Merge Small CarmakersGov’t Plans to Merge Small Carmakers

The minister of industry, mine, and trade says his ministry is planning to merge small automakers, emphasizing that the plan would take time, Eghtesadnews reported on Sunday.

Mohammad-Reza Nematzadeh said the merger of smaller carmakers is a new policy which will take three to four years.

According to the minister, cooperation with the Chinese automobile manufacturers is just a temporary solution for the domestic companies and will last until the anti-Iran sanctions are lifted.

Ever since an interim nuclear deal was reached between Iran and the six major powers in 2013, which led to the partial lifting of sanctions, numerous leading carmakers from Europe and the US have visited Iran. They have even reached initial agreements with carmakers in the country to officially start cooperation as soon as the sanction imposed on Iran over its nuclear energy program are permanently removed.

The minister earlier stressed that carmakers should enhance the quality of domestic cars and manufacture world-class vehicles by seeking assistance from reliable international advisors, according to IRNA.

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. If the plan’s objectives are fulfilled, the auto industry would account for between 6% and 10% of the gross domestic product.