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Iran to merge small car manufacturers

Business Materials 18 January 2015 10:17 (UTC +04:00)

Tehran, Iran, Jan. 18
By Milad Fashtami - Trend:

Iran plans to merge small car manufacturers.

Iranian Industry, Mine, and Trade Minister Mohammadreza Nematzadeh said that the process will take 3-4 years, Iran's Mehr News Agency reported on Jan. 18.

"Since the country's economy is under the western sanctions, we are forced to work with Chinese car manufacturers," he said.

"The manufacturers are free to choose their trade partners," he explained, saying that the ministry just announces the general policies.

Some 825,389 cars have been produced in Iran in the first nine months of the current Iranian fiscal year (March 21-Dec. 22, 2014).

The figure indicates 64.3 percent increase compared to the same period of preceding year.

Tehran produced 989,110 cars in 2012, which made the country Asia's eighth largest car manufacturer. Iran also stood at the world's 18th place in the mentioned year.

The Islamic Republic's automobile output faced a 40 percent decrease in 2012 due to the sanctions. The country was Asia's fifth largest car manufacturer in 2011, with a total output of 1,648,505.

Western countries suspended certain sanctions against Iran as the Geneva nuclear deal came into force on January 20. Iran was permitted to import materials for its auto-manufacturing sector as a result of the nuclear deal implementation, which has led to a sharp increase in the country's auto output in recent months.

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