Iran’s car production slips 57.8 percent in one month

Business Materials 22 May 2013 16:54 (UTC +04:00)

Azerbaijan, Baku, May. 22/ Trend, F. Karimov/

Iranian carmakers manufactured 25,246 cars in the first Iranian calendar month of Farvardin (March 21-April 20), down 57.8 percent compared with the same month in the previous year, ILNA reported.

59,836 cars were made in the first month of the past year.

Iran Khodro, Pars Khodro, and Saipa - the three biggest carmakers - saw 77.7 percent, 75.1 percent, and 32.5 percent decreases in their outputs, respectively.

Iran imported over 44,000 cars, valued at about $1 billion, during the past Iranian calendar year, which ended on March 20, ISNA reported.

The imports showed an 11.3 percent increase over the course of a year.

According to the report, the average price of these imported cars was $24,441.

The UAE, South Korea, and Kuwait were the main sources of cars imported to Iran, with 57 percent, 27 percent, and 4 percent shares of the total number of exported cars, respectively.

The Industrial Development and Renovation Organization's chairman Gholamreza Shafei said in December 2012 that the main problem facing the Iranian car industry is not international sanctions, but rather a shortage of revolving capital.

Iranian carmakers are manufacturing at 50 percent of their nominal capacity, he said. This is due to a shortage of capital, the Fars News Agency quoted him as saying.

Iran plans to manufacture at least three million cars by 2025 and export some one million of them, Iranian Industry, Mines, and Trade Minister Mehdi Ghazanfari said on June 16.