Government Ruined the Last Hopes of Car Imports

Khodrocar – After one month of discuss about the car import limitations and exchange rate fluctuation, government decided to stop vehicle imports.

Imports, which in recent years have been able to move foreign investors to the Iranian market with a boom in sales and turned it to a competitive market for foreigners. Vehicles from Germany, France, India, China, Korea and also Taiwan were competing with each other in this market.

Perhaps the events, such as the six-month closure of SABTARESH, restrictions and disruptions in car import registration, exchange rate fluctuations, and finally the impact of Trump's decisions on the Iranian automobile industry, were all enough to make this industry fail.

Now, considering the car import ban, what future is waiting for the automotive import related businesses? Will Iran’s business partners leave the country because of these events?

Amirhassan Kakaei, tells Khodrocar regarding the issue: "Currently, Iran is in an economic war. Although, some automakers decided to leave Iran after Trump left Iran Nuclear Deal, some companies decided to stay and see a bright future.”

He continues: "USA decision to withdraw JCPOA is coincident with the exchange rate fluctuations in the country and that why the government made such a decision.”

Kakaei emphasizes: "United States targets one of the most important and major industries in Iran, the automotive industry, but this issue will be solved soon. The import ban will not hurt the entrance of foreign invests. This will force investors to invest in the country instead of importing cars.”

The automotive industry expert believes: "Maybe in the first steps the country and the car industry would face financial loss, but after a while, the investment request for launching domestic production lines will increase, because there is potential for car production in the country. Currently, 90 percent of consumers use domestic vehicles, so the government's recent decision does not seem to hurt foreign investments.”

Kakaei adds: "There is hope that the economic situation heals, the government abandon the car import ban and also the quality of domestic vehicles increase.”

Khodrocar – Reaching the United States deadline for companies to exit Iran, some items were banned from importing in order to prevent excessive increase in prices and the lack of sufficient foreign currency. Cars are not exceptions.

The Ministry of Industry, Mine and Trade has taken this decision to reduce the import tension, however some experts are worried about Iran’s future automotive industry.


Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Maziyar Jafarieh