Baku, Azerbaijan, Jan. 10
By Fatih Karimov - Trend:
Chinese carmaker Lifan plans to produce 60,000 cars annually in Iran.
Shang You, President of Lifan, said in a meeting with the managing director of Iranian carmaker Kerman Motor, it was decided that 60,000 cars to be assembled by the Iranian company in the next Iranian calendar year, which starts on March 21, Iran's Mehr news agency reported on Jan. 10.
In line with the Iranian administration's policy, Lifan will move toward transferring the production of car parts to Iranian manufacturers, Shang You said.
Foreign automakers seeking a return to the potentially huge Iranian market with the lifting of international sanctions will find the business environment has changed: former joint venture partners now want to play the game by their own rules.
Total car production was 1.6 million in 2011, but it had halved two years later.
US sanctions on the auto industry in 2013 were the main cause, on top of American and European bans on Iranian bank transactions abroad.
But the auto sanctions were lifted earlier this year after an interim nuclear agreement was reached between Iran and world powers and a final accord is still on the horizon, raising the prospect of better times for the industry.