Supporting Local Products By Putting high Tariffs for Chinese Products/ Chinese Dumping in Iran’s Market

Khodrocar – In recent years, a great number of Chinese products are imported to Iran due to cheap prices. However, most of the Chinese productions don’t have good quality and they can pass basic standards hardly and tires are not an exception.

Chinese tires were imported to Iran in different brands before the announcement of new rules in 2015 and Iran's market was full of low quality tires. Also, the number of car accidents increased because of low quality tires at that time. Experts believe that importing and smuggling of Chinese tires caused dumping on Iran's market.

This dumping happened while domestic companies have the ability to resolve the 70% of domestic demands. Other countries such as India, Turkey and Russia, which have domestic tire production has put high tariffs for importing Chinese tires to prevent the dumping.

"72% of Iran's market demand are resolved by the local companies in past years and the rest was covered by Importing. One more tire manufacturer has been added to the chain of tire production this year, which could be a great help for this industry." Mostafa Tanha, Speaker of Tire Industry Association, said to Khodrocar reporter." Iran's market needs 350 thousand tons of tires annually that 240 thousand tons of it would be covered by domestic production."

He mentioned that Pride, Peaguet Family and Samand are using tires more than other cars and local producers can handle the market demand. Iran's market condition has changed after the Chinese tires, entry, and local producers don’t have the tendency to increase the production rate.

"Iran's market is filled with low quality and not standard tires. Already, tire smuggling has a great number which is critical. The best way to control the bad effects of Chinese low price tires on our market is to make tire importing unbeneficial." He added.

"Most of the Chinese companies are decreasing the quality in order to produce with lower cost so their tires could pass the basic standards hardly. Right now, Iran's government should think about some antidumping rules same as other countries." He continued.

As it seems, Iran's market is hurting by the dumping of Chinese tires so importing Chinese tires should happen under harder conditions such as other countries like Russia. In this situation, increasing the price of Chinese productions would be a good way to support the local products.