Reviewing Obstacles In front of Automotive Industry

Khodrocar – 10th of Tir (1st of June) is the day of Industry and Mine in Iran. Our industry faced with difficult challenges during the last year, domestic and foreign challenges which impact it a lot. Now we will review the past year in the following article.

One of the major challenges during this year was the shutdown of SABTARESH website which had negative effects on the car’s market. Sudden Shutdown continued for six months but after that it was announced that 6000 cars were registered. After all, the reason of this shutdown never reviled.

The shutdown continued for six months and it was a start for all the problems of foreign car market. Problems such as price increment, delay in announcing tariffs, conditions for importing cars with specific engine displacement, illegal order registration of 6000 cars and finally car import ban.

Of course, none of these challenges could grounded the industry singly but all of them happened in a same time and as a result imported vehicles’ price increased for 50 to 80 percent and the government called it a price bubble. Market activists blame local and foreign obstacles on the other hand experts think that lack of supervision is the reason of this market tension.  

Due to the price increment in the spring, the parliament came to organize the market but after two and a half months ministry of Industry banded vehicle importation then they postponed their plan for six months.

Part manufactures were alongside automakers during these problems and now we are hearing their bankruptcy news. Once they hope to see light days by participating in foreign contracts then they had difficult days after cutting the trading exchange and continue the production while part importation and illegal manufacturers were active in the market and now near the day of Industry some of them are thinking about closing their workshops.  

Renault – IDRO contract planned to be executed in the first days of 1396 but postponed for 5 months but again Iranian side didn’t fulfill its promises for giving the Bon Ro site and the contract faced a dead end. However, there are some whispers that part of this contract will execute in the current year.

The contract of Saipa Kashan and Citroen processed according to the schedule and finally the first pile of Citroen C3 produced and presale but after the announcement of Peugeot for leaving Iran the future of Citroen is in shadow too. We have to wait and see what will happen in the first phase of the sanctions.  

Mamout was planning to sign a contract with Volkswagen as a private sector but the German automaker didn’t agree to sign contract due to ministry hard conditions and just let the importation happen. Most experts think that they will leave Iran certainly.

A close look at the Iran’s auto industry doesn’t have only bad news and according to the latest statistics Iran is the 16th country for the rate of vehicle production.

since the second week of Farvardin price increment started and foreign cars got expensive every day and on the other hand domestic cars got expensive for 5 to 10 percent and the market faced with some difficult challenges.

After Trump speech for leaving the JCPOA, Peugeot which is one of the oldest partners of Iran’s companies announced to leave but Renault said he will stay in Iran because Iran’s market is potential.  Also there are whispers about the future of the automakers but we have to wait more till the next month.

As we said, in the last year Iran’s auto industry faced with a lots of difficult problems but everyone hoping to see a better day for th future of this industry.

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani