VW may start car production in Iran in 1 year

Business Materials 28 September 2016 16:13 (UTC +04:00)

Tehran, Iran, Sept. 28

By Mehdi Sepahvand – Trend:

Omid Yaraghi, chairman of the joint Iran-Germany chamber of commerce, has said he hopes that German carmaker Volkswagen will start making cars in Iran in one year.

Yaraghi made the remarks in a meeting of the joint chamber, ISNA reported September 28.

Reports in early 2016 said the German carmaker was in talks with two Iranian carmakers, Mammut and Kerman-Khodro, to start producing cars in Iran.

Mammut is a producer of transit vehicles, while Kerman-Khodro makes passenger cars.

Major Iranian carmakers have been producing outdated models for decades and the market thirsts for newer products.

While some companies are looking forward to producing cars in cooperation with foreign partners, the import of cars is also on agenda.

A government policy draft predicts that by 2025, Iran might be importing 300,000 cars per year.

Last year (by Iranian calendar, which ended March 19), Iran imported 50,000 cars. The previous year’s import had been 100,000 cars.