The Effect of Sanctions: From Rumors to Reality

Khodrocar – Just 30 days remaining to the deadline and the foreign companies are more likely to leave Iran because of new sanctions.

Will Chinese automakers give up on Iran’s market?

Chinese cars have always had their customers during the period of their presence in Iran; What if they leave Iran?

Farhad Ehteshamzad, director of Iranian Automobile Importers Association tells Khodrocar regarding the issue: "Chinese have always been traders and maybe they will announce that they will stay in Iran in the last minutes.”
He continues: "If Chinese leave Iran, Indians will take over the market. However we should wait for their decision.”

The Psychological Effects of Sanctions More Than Its Implementation
Mehdi Dadfar, Secretary of Iranian Automobile Importers Association mentioned the abandonment of relationship between Iran and China and says: "Sanctions have only a psychological effect on industry and the car market. Sure we will have some limitations but the psychological effects are stronger.”

He states: "Certainly, the absence of some companies will affect the automotive industry but if we avoid the monopoly and etc., the future will be brighter.”

Avoiding the Monopoly In Automotive Industry
Dadfar says: "We are able to produce whatever we want with few conditions. First is to use the experts.”

He mentions the current import conditions and states: "In the import field, we are sanctioning ourselves and if it continues, everything will get worse.”

Dadfar believes that car imports depend on exchange rate and says: "90 percent of the car industry's problems in the import sector depend on lack of tact, comprehensiveness and familiarity with the automotive business, and ultimately non-specialized decisions and monopolies. Removal of monopoly will make a huge improvement in this industry. We can’t say that the sanctions are non-effective but it has many solutions to overcome.”

Secretary of Iranian Automobile Importers Association tells about the Chinese exit from Iran: "Governmental and private sector should start cooperating with each other because the private sector’s interests are connected to the interests of the community and they will use smallest opportunities and facilities.”

Khodrocar - Many experts believe some Chinese automakers may have been able to cope with Tramp's decisions and want to stay in line with Iran, in addition to circumvent the sanctions, because not only they have contract with Iran, but because of the existence of a joint production line and good sales in the Iranian market, they will benefit well.

On the other hand, some experts believe that Chinese will leave Iran. We must wait for the final decisions of Chinese carmakers.


Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Maziyar Jafarieh