News ID : 3169
Publish Date : 21 August 2018 - 07:30
Iraq, where Iranian are not too fund of, turned to be the main export destination of Iran’s automobile industry so far. It also looked to be a good dear for lots of years to come but the whole plan change with US government pulling out of JCPOA making even Iraq along other European companies to reduce its automotive relations with Iran.
Khodrocar – It is roughly a decade since Iran started to export Pride and Samand to Iraq and now it is all over. Exporting vehicles was formed when the domestic production started to grow rapidly so the tendency of auto makers to export increase accordingly. Exporting vehicles to Iraq, Saudi Arabia, Azerbaijan and other countries face lots of negative and positive attitudes but was followed with increment in the export figures. 

What is quite interesting now is the economical attitude of Iraq to whether go on trading with Iran or not. As the enforcement of the new series of sanctions started, Iraq has also halted its trades with Iran. The last statistics of Non-Petrochemical export of Iran to other countries, vehicle export share to Iraq with worth of 2.5 million USD equal to 341 vehicles was ranked as first. From automobile parts view point, Iraq also came first again with 18 million USD worth of share. Afghanistan, Italy and France came after Iraq respectively.

Iraq Forced to Stop Imports from Iran
Recently a high ranking Iraqi authority from one importin company told Euro News that they stopped vehicle imports from Iran due to US sanctions. Iraq government also asked US government for exemptions to import some auto parts for car production. Yet all vehicle production lines are halted in Iraq.

Now that vehicle production figure in Iran has dropped drastically, is it now able to provide vehicles for demanding export markets? What will happen to Iran’s export markets if Iraq stops its importing relations with Iran?

"Considering current circumstances and domestic car production, exporting vehicles seem naive and the automobile market will definitely get worse than what is now.” Said Abdollah Babaei, an automotive expert.

"I have announced so many times, a vehicle now is priced at 30 to 40 million tomans with 3800 tomans worth of currency. Considering 120 percent increment in currency price they will cost close to 60 million tomans. Vehicle pricing must be completely free. Determined by the market demand. That’s the only way to make the automobile industry survive.” Said babaei.

Khodrocar – Haydar Abadi, Iraq prime minister said in a conference that Iraq will follow sanctions against Iran although it is totally against the whole strategy of the sanctions. We consider the sanctions as a mistake but we obey just for the benefit of our people. This is while Iraq had a 6.6 billion worth of import from Iran that vehicle was one of the most important import items.

Khodrocar Journalist: Negar Mirkarimi
Khodrocar Translator: Shahab Anisi

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