Khodrocar – The time has come. US sanctions will be executed as Donald Trump said before.
This time, one of the priorities of these sanctions targets Iran’s automotive industry. The effect of it will be long-term and one of them is the exit of foreign automakers from Iran.
By beginning the new round of these sanctions, the exit of 10 industrial companies has been finalized now, and we are not sure if they will return or not?
Forecasting a Significant Drop in Domestic Production
During the last two months, many statesmen and experts expressed their opinion about new round of US sanctions. Some official believe that it is like a joke for the automotive industry and on the other hand, some experts believe that it will damage vehicle imports and will cause a drop in domestic production.
Now, in recognition of US exit from JCPOA and implementation of the second round of sanctions, Peugeot and Renault have officially announced their withdrawal from Iran’s automotive industry and the industry is now waiting for their final decision.
On the other hand, the imports of disrupted auto parts will be banned in 23rd of August and there will be no imports from china to Iran. Iran's automotive industry is facing hard times and according to experts and government officials, the support from domestic products must be increased. But, are domestic companies able to produce everything such as raw materials by themselves?
There are different opinions about the self-sufficiency of Iran’s automotive industry. Some believe it has many potentials and some other disagree.
We Don’t Know What Is Happening in the Dark Room of Sanctions
Ali Shokouhi, an automotive industry expert, tells Khodrocar regarding the issue: "Currently, the business in Iran is suspended. Therefore, we must wait for the final decision of Trump. It is like a dark room and we don’t know what is going in there. By the beginning of them, many companies are leaving Iran or soon they will leave.”
Shokouhi believes that one of the effective external factors is exchange rate increment, which caused a huge turmoil. Meanwhile, many companies have fired their employees and cause unemployment crisis.
Vehicle Price Increment: The Minor Effect
Ali Shokouhi explains: "Since the beginning of this year, there have been numerous factors affecting the automobile market and challenged it. Vehicle price increment was one of the minor effects. Challenges such as the supply of auto parts, after sales services for foreign car owners, reduction of their quality and services, huge unemployment and auto parts.”
This expert explains about the future of domestic car production: "Domestic car industry is not an exception because they are working with foreigner partners in the field of producing parts and their exit will affect the car production volume.”
He adds: "Vehicle pricing is going to be executed by car suppliers that will cause an increase in prices again.”
He believes that Iran’s automotive industry have many potentials but it is no enough when the hole industry is paralyzed.
Khodrocar – First round of sanctions made Boing, General Electric, Maersk, Peugeot, Siemens and Total to leave Iran and other companies are expected to leave soon. Renault is in the waiting line and soon we will hear the news about its decision in this regard.
Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Maziyar Jafarieh