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Iran significantly reduces tariffs for tyre imports

Business Materials 24 September 2018 17:48 (UTC +04:00)

Baku, Azerbaijan, Sept.24

By Leman Zeynalova - Trend:

The tariffs for imports of tyres for heavyweight cars and buses to Iran has been reduced from 26 to 5 percent, said Iran Customs Administration (IRICA).

The decision was made taking into account the high demand for tyres for the public transport.

The tyre consumption in Iran stands at 350,000 tons, of which 250,000 tons are produced domestically. The country primarily imports tyres from China, India, Indonesia and South Korea.

Around 40 percent of Iran’s tyre demand is being met through imports. Imports from 2004 to 2014 surged around 150 percent to 133,136 tons. Imported Chinese tyres are 40 percent cheaper than the locally produced tyres.

Earlier, it was planned to double tyre production capacity in Iran from 230,000 tons in 2017 to 500,000 tons in the next five years.

In the initial phase, the country was planning to add 100,000 tons and then reach 500,000 tons in five years.

However, Iranian tyre companies are not keen on setting up plants in other countries. A few Iranian companies are trying to enter the Asian markets along with their traditional export market.

Follow the author on Twitter: @Lyaman_Zeyn

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