Iran sets condition for foreign partners in car manufacturing projects
Baku, Azerbaijan, Nov.23
By Fatih Karimov - Trend:
Iran has set a condition for foreign partners to invest in the country's car manufacturing projects.
Iranian Deputy Industry Minister Reza Norouzzadeh said 40 percent of production should be carried out by Iranian manufacturers, Iran's Mehr news agency reported on November 23.
The figure should increase to 85 percent over the course of five years, he noted.
Foreign cars should not be imported on CBU (Complete Built Up) basis, he added.
Iran's automotive industry has started to revive thanks to suspended western sanctions on the country's carmakers.
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 exports in recent months.
Iran exported 10,744 sedans during the last Iranian fiscal year (ended on March 20, 2014), with some 4,231 of that amount only exported in the latest Iranian month.
The Islamic Republic exported 10,744 sedans in the last Iranian fiscal year, with some 4,231 of that amount only exported in the latest Iranian month (Feb. 20- March 21).
Some 521,585 cars were produced in Iran in the first half of the current fiscal year (March 21 - Sept. 22). The figure shows a 74.3-percent increase compared to the same period of the previous year.
The country produced 989,110 cars in 2012, which made it Asia's eighth largest car manufacturer. Iran'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.