Baku, Azerbaijan, Sept. 22
By Fatih Karimov - Trend: Iranian carmaker Pars Khodro has suffered a €300 million loss due to sanctions against the country.
Nasser Aqamohammadi, Pars Khodro managing director, said during Iranian fiscal years 1391 (March 2012-March 2013) and 1392 (March 2013-March 2014), during which the sanctions reached their peak, the company's production dropped to 40,000 per year and some production lines were halted, Iran's Fars news agency reported Sept. 22.
"In the past fiscal year 1393 (March 2014-March 2015), the output rose by 80 percent and reached 120,000," he added.
The company's nominal production capacity is 300,000 cars per year, he said, adding that 250 million euros has been allocated to boost output by 200,000 cars of Renault and Nissan brands.
Iran's car industry, comprising the major companies of the Bahman Group, Iran Khodro and Saipa, is one of the largest industrial sectors, accounting for more than 10 percent of GDP, World Bank reported.
"After the tightening of sanctions in 2012, the production of cars declined sharply and reached 700,000 cars annually compared to 1.6 million prior to the sanctions."
"The main reasons for the slowdown in the auto industry were the depreciation of the national currency, which increased the cost of imported parts and components, and the ban on imports of material and equipment. Car sales revenues fell by half, costing the industry billions of dollars annually. Data are not available but estimates show that the decline in auto production led to layoffs in this sector, which accounts for 4 percent of the workforce and is considered one of the main job-creating sectors in Iran."
Edited by CN