Iran’s car export continues to fall amid output increase
Baku, Azerbaijan, Sept. 24
By Fatih Karimov– Trend:
Iran’s auto export continues to fall despite the fact that the country’s car industry has experienced output increase in recent months, following lifting of international sanctions.
According to the latest report of the country’s Industry, Mine and Trade Ministry, Iran’s passenger car (including sedans and SUVs) output registered a rise by 20 percent during the first five months of the current fiscal year (March 20-Aug. 21) to stand at 496,833 units.
Meanwhile, Mojtaba Khosrotaj, head of Iran's Trade Promotion Organization (TPO) announced Sept. 24 that Iran’s auto industry export has registered a fall by 32 percent in terms of value and 20 percent in terms of volume during the first five months of the current fiscal year.
Iran’s passenger car export has decreased by 26 percent in terms of value and 25 percent in terms of volume, respectively in the five-month period, the official added.
Khosrotaj refused to unveil the exact value and number of the exported cars, but the last year’s auto export statistics indicates that the country’s car export is not brilliant.
Iranian automakers exported 10,000 cars in last fiscal year (ended March 20, 2017), which was 59 percent less compared to the 24,500 cars in the preceding year.
Now, Khosrotaj’s statement indicates that the decreasing trend of Iran’s car export will continue during the current fiscal year for third straight year.
Iran’s car export registered a record high in fiscal year to March 2011 and stood at 81,596, however the figure sharply fell in next year (fiscal year to March 2012) and accounted to 38,258 due to intensified international sanctions which targeted the country’s auto manufacturing industry.
The export even decreased to 10,000 in the fiscal year to March 2014, but revived again following the removal of the international sanctions against Iran’s car industry.
Iranian automakers exported 27,000 cars in the fiscal year to March 2015, but they failed to revive the exports to the pre-sanction period.
Some issues that prevent Iran to materialize its car export targets are systemic problems remaining from sanctions period. According to Khosrotaj, difficulties in transferring foreign exchange and the lack of communication between Iranian and foreign banks are among these problems.
However, there are other problems as well which have affected Iran’s traditional markets in the region.
Decrease of the purchasing power of people in the Middle East, as well as political and economic instability in some markets, such as Syria and Iraq also impact negatively Iran’s car export, Khosrotaj believes.