Iran and UAE: Two countries connected by floating cars
Tehran, Iran, Oct. 24
By Mehdi Sepahvand – Trend:
Iran imported 32,663 cars from March 21 to Sept. 22. Of that number, the biggest part was brought in from the United Arab Emirates.
Official reports say that 70 percent of Iran’s car imports come in via the UAE. A survey in the car market in Tehran shows the dealers are not aware of the reasons behind that fact.
“All we know is that the Emirates is the first place that comes to mind when we talk of imports. It is like heaven in our business,” Sajjad Alviri, a car dealer said when asked what he thought about the fact.
Reports go that even Renault cars are imported to Iran via the UAE, although the company has an agent in Tehran.
Of the mentioned period’s imported cars, 5,016 were imported by Iranian car manufacturing companies and entities close to power.
A look at the conditions of car imports in Iran shows that the reason may lie in the economics. Iran enforces a tariff of 40 percent on imported cars with engine volumes up to 2,000 cc. For cars with 2,000 to 2,500 cc engines, the tariff rises to 55 percent.
The UAE, in contrast, puts little tariff on car imports, 3.5 percent, much lower than those assigned by nearby states.
One has add to that the fact that Iran and the UAE share water borders in the Persian Gulf, so providing the most economical means of transport for heavy and voluminous cargos of cars.