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Economists Ask the Government to Support Iran’s Automotive Industry

Iran's Automotive Industry

According to statistics released on Thursday by Iran Customs Administration, car exports have dropped by over 98% during the first quarter of new Persian year (started on March 21). Hojjat Zareri, an Iranian economist, says the local government should support Iran’s car manufacturers in order to save the country’s automotive industry.

“Currently, car manufacturers in Iran cannot import necessary parts and raw materials from the European states. This automatically increases the cost of car production in the country. On the other hand, the final prices of different types of cars will be increased accordingly, and Iranian companies cannot sell their products in international markets.” Hojjat Zareri told the reporter of Herald Boy on Friday.

There are over 25 automakers in Iran, actively producing both light and heavy vehicles. Companies from Germany, France and Italy used to provide raw materials to Iranian car manufacturers. International sanctions on Iran prevent European companies from exporting raw materials and spare parts to Iran.

Iranian car manufacturers export their products to European and Asian markets including but not limited to Syria, Iraq, Slovakia, Slovenia and Russia.

“Automotive industry plays a key role in Iran’s economy, and the government should fully support local manufacturers. Over the past 30 years, Iranians have worked hard to improve country’s automotive industry, so it’s vital for the local government to offer its sincere support at this critical time.” Zareri reiterated.

At the same time, car imports to Iran have increased significantly. “We need to stop people from buying foreign-made cars. Unfortunately, the prices of Iranian cars have increased dramatically, and Iranians not willing to pay the high rates of cars made by local manufacturers.” Hojjat Zareri concluded.

Based on studies conducted by official sources, Iran’s automotive industry is the second most active industry of the country, after its oil and gas industry, accounting for 10% of Iran’s GDP.

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