What is the Destiny of Automotive Contracts?

Khodrocar – among all joint ventures of automotive industry, the contracts of IKCO and Peugeot, Renault and IDRO, Saipa and Citroen and presence of VW in private sector were the most important ones during the last two years.
Now, we are going to review the condition of these contracts after 2 years:

After two and a half years since JCPOA only two new cars launched which are 2008 from IKCO and Peugeot and C3 from Saipa and Citroen which are assemble In Iran and the rest of contracts are waiting for execution.

In this situation, Renault and IDRO contract is undecided and sometimes we hear some news about the start of the contract but nothing happens. It was going to launch last year but till now it is not even have the final sign.  

Next to those contracts there are some which remain undecided. For example, the final decision about the presence of Fiat and VW by private sector has not been got yet. Meanwhile, Iran and Italy never had challenge during trade relations and they were firsts to start trading with us after the JCPOA and at that time they just promise to build two million cars annually. After this long time and by the decision of Trump we think that the execution of this contract will be postponed for another time.

Most of experts thought that this year could be the rising year of Iranian auto industry quality but since the beginning of the year no good news has been said yet. Trump’s decision to quit the JCPOA, shocked the automotive industry and frightened all local and export markets also all contracts are in silent and nothing happen to them. Alongside importation market, local auto market had faced changes due to the rising of dollar price.

Next to JCPOA auto contracts, VW agreed with MAMUT to be present in Iran’s market but now and after the US decision, there is whisper that they will leave Iran however most experts think that US pressure on Germans is not logical. Now if MAMUT can get out of US pressure, should find another company to negotiate otherwise, Iran’s auto industry would remain in the hope of VW entrance.

since one month ago and especially after Trump’s speech, Iran’s auto industry is under more pressure and most experts are not hoping any bright future for this industry. During the past time auto industry was the 9th or 10th priority but in the recent sanctions it became a major priority. 

Khodrocar reporter: Negar Mirkarimi

Khodrocar Translator: Amin Zamani