Contradict Governmental Strategies in Car Import/ Importers in the Challenge of Local Sanctions

Khodrocar – at the end of 1397 (Mid of Feb 2017) the government decision about the vehicle importation changed and new strategies make the condition harder for the vehicle importers.

In the section 3 of the new instruction said that importers only have permission to import vehicles which have local production in some models or try to produce and export their parts to foreign countries. There is also suggestion in the section 3 of the instruction:

Vehicle registration order can only be importer in full CBU according to this instruction.

If the importer has equipment and ability to sign contract with local producer and produce car with 20 percent local production then they can import equal to 50 percent of their production value. Also, in and importer doesn’t have the ability to sign a contract with the local producer then they have permission to import equal to 40 percent of vehicle export value.  

After this instruction some importer companies tried to start production lines and localize products to keep importing. Now after two years the government strategy has changed and it seems that the government wants to ban vehicle importation and the future of these importers who tried to produce locally is unclear.  

"Localizing vehicle is not economy efficient for all products also in the current condition it’s not happening because beside expensive production there is no balance between production and sale. After sanctions mother companies cut their relation with Iranian companies and in next year vehicle importation ban will happen to control the exit of currency but the government should think about the importers.” Mohammad Mortezaei, expert of vehicle importation told khodrocar reporter.

"Car importer companies have small market but they have a great role in employment and some companies which had 500 employee now reduce to 100 persons. The government ban the importation to control currency but should pay hundred billions to make job for unemployed people of this industry.” Mortezaei said.

"Because of currency rate increment of foreign cars in the past months now only 2 thousand cars will import to the country which won’t exit much exchange and localization is not efficient in this matter but we can have a plan to let importer companies do their work and keep their life.” He added.

It is worth mentioning that our correspondent efforts to respond to the head of the Ministry of Industry's regulation did not go away in order to respond to policy inconsistencies in car imports.

Khodrocar Reporter: Hadi Sianaki

Khodrocar Translator: Amin Zamani