Will Car Production Increase after the Importation Ban?

Khodrocar – there were lots of predictions after the importation ban during the recent weeks about the car production in 1397. Some experts think limitation and ban of importing vehicle will naturally increase the local production and people will buy domestic cars more.

On the other hand, some experts think difficulties of importing raw materials, auto parts and currency limits, producing vehicle will not increase as we think. Also, activists believe importation ban will make problem in market and controlling the price will be more difficult.

It seems that there are some hopes for production increment in the current year because governmental officials hoped to see the increment.

A glance at car production from 1392 to 1396

Statistics of car production between 1392 & 1396 show the direct relation of political conditions and local production increment. Each time Iran had good relation with powerful countries, local production increased to compete with them. After the JCPOA when sanctions lifted, most of foreign companies start negotiations for cooperating with Iranian companies and domestic production increased.

During 1392 to 1396, car production increased well and it got closer to the vision of 1404 of course there is still a long road ahead of auto industry to fulfill the vision but they had good steps toward it.

Producing domestic in 1392 was decreasing but after that it reached 1 million rate annually and since that auto industry start an improvement path. Foreign partners’ entrance, joint venture contracts did a lot in order to increase the domestic production because SAIPA and IKCO start their cooperation with French companies in the first days and produced joint products.

In 1393, car production reach 1.13 million units but after that in 1394 political and economic situation got complicated so the car production shockingly decreased to lower than 1 million units. In 1395 the production increased for 35 percent and reached 1.3 million units and after that in 1396, it increased for another 13 percent to 1.5 million cars.

The statistics of car production was full of hope in the recent years as the production increased and officials think the vision of 1404 is reachable and we can produce 3 million cars a year but we have to think about the obstacles in front of the auto industry because some international decision and effects of them will make difficulties for our industry without notice so the auto industry should be ready for all problems.

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani