Iranian Car Manufacturers Losing Market Share in Iran
Iranian rial lost half of its value against foreign currencies following the latest round of U.S. sanctions against Iran. At the same time, car prices increased by over 100% in the country.
Morteza Tabatabaeizadeh, an Iranian economist, says the new government can control the Iranian car market by employing applicable policies in this regard.
“In recent days, Iranian rial has gained strength against the U.S. dollar. I strongly believe that the Iranian government should manage to convince the Western governments to lift sanctions from Iran’s automotive industry,” Tabatabaeizadeh said in an interview with the Herald Boy on Saturday.
“Accordingly car prices will be decreased gradually in domestic markets. Iranian car manufacturers are currently unable to import raw materials from the European countries. By facilitating imports of raw materials, the local car manufacturers can produce cheaper vehicles for end users,” Tabatabaeizadeh added.
Morteza Tabatabaeizadeh went on to say that Iran’s new president Hassan Rouhani can change the current conditions. “I hope they manage to apply useful policies in order to decrease car prices in domestic markets. At this time, the average price of made-in-Iran cars is more than the average price of imported cars. As a result, less people are interested in buying the products of Iranian car manufacturers. This will actually damage the nation’s automotive industry in the long-term.” Tabatabaeizadeh concluded.
Economic sanctions on Iran ban Europe-based companies from providing raw materials to Iranian car manufacturers. Iranian companies have faced numerous problems in producing cars over the past few years. Subsequently, the country’s car exports have decreased by over 98%.
Today, Iran is the 13th largest automaker in the world and one of the largest in Asia. Iran’s automotive industry is the second most active industry of the country.