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Iran's car production down by 30 percent

Business Materials 18 January 2019 12:12 (UTC +04:00)

Tehran, Iran,Jan.18

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Iran auto and auto parts production have fallen down by 30 percent, due to US sanctions in the current Iranian year (March 21,2018), while the industry waits for the government financial aid to boost production.

"The auto production has dropped this year due to the US sanctions, and auto makers have suffered losses," said the Head of Iranian Automotive Parts Manufacturers Association Mohammad Reza Najafi Manesh in an interview with Trend.

"The implementation of new prices on auto products would takes time and auto makers need foreign currency," he said.

Referring to the government promise of credit allocation to the industry, he said that there have been talks with the first VP Eshaq Jahangiri on this topic but nothing has been implemented so far.

"The automakers have requested $2.3 million, but it hasn't been agreed upon yet, yet it is expected they will be allocated the asked amount," Manesh said.

Speaking of the fall of auto production, he said it is natural, since it got affected by sanctions, and many workers have lost jobs because of this.

Manesh went on to add that Iran's auto exports "are mostly heading to Iraq."

"The government's financial aid to the automotive parts manufacturers would adjust the prices, and hopefully the industry would bounce back," he added.

Speaking about the imports of auto parts, he said due to current process of registration, the imports have slowed down. Manesh expressed hope that the situation would normalize soon.

He noted the government has not offered the official foreign currency rates to auto industry yet.

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