...

Iran to reduce dependence on car parts’ import

Business Materials 27 September 2018 13:52 (UTC +04:00)

Baku, Azerbaijan, Sept.27

By Leman Zeynalova – Trend:

Car manufacturing has dropped by around 38 percent in Iran in August, said the country’s Ministry of Industry, Mine and Trade.

Shahram Azadi of Khaje Nasir Toosi University of Technology, told ISNA that the Iranian government should support the country’s car industry.

“Taking into account that the US sanctions affect Iran’s car industry, the Iranian government should support this sphere and facilitate the procedures related to car manufacturing, by eliminating bureaucracy in this field” he said.

Azadi pointed out that car parts get stuck in the customs of Iran due to the bureaucracy, which causes delays in the process of manufacturing.

“One of the biggest problems of the car manufacturers is about the lack of funds for purchasing raw materials. Car manufacturers and contractors do not have enough funds to assemble the imported car parts. The government should facilitate the financing and banking procedures and thereby support the development of the car manufacturing industry, as well as provide them with necessary resources,” he added.

He also noted that the imported parts for car industry will be produced in Iran, thereby reducing the country’s dependence on imports.

Iran’s auto industry registered a production fall by 9.5 percent in the first five months of the current fiscal year, started March 20, 2018 and witnessed production of 525,586 cars.

Iranian car manufacturers produced 1.535 million vehicles in last fiscal year, 13.7 percent more year-on-year.

Iran manufactured 1.44 million passenger cars in the 12-month period, which was 14.8 percent more compared to the preceding year.

Over 1.350 million cars were produced in Iran in the Iranian fiscal year to March 20, 2017.

---

Follow the author on Twitter: @Lyaman_Zeyn

Tags:
Latest

Latest