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Iran-Khodro unveils new cars, officials address industry’s shortcomings

Business Materials 17 December 2017 23:01 (UTC +04:00)
Iran’s largest auto manufacturer, Iran-Khodro has opened production line for two new models of Sedan.
Iran-Khodro unveils new cars, officials address industry’s shortcomings

Tehran, Iran, December 17

By Mehdi Sepahvand – Trend:

Iran’s largest auto manufacturer, Iran-Khodro has opened production line for two new models of Sedan.

One of the new products was Dena+ Turbo charge, a remote facelift of Peugeot 405, and the other an automatic-transmission version of Peugeot 207 with an added trunk, Trend correspondent reported from the event.

Speaking at a conference on the occasion, Parliament Speaker Ali Larijani pointed to problems that hinder investment in car as well as other industries in Iran, complaining about the tough and arduous bureaucracy that lies ahead of investors.

Nonetheless, he went on to promise the car makers that if they improve their products’ safety, develop their indigenous R&D sections, and improve exports, the Parliament will financially support them by allocating loans from the National Development Fund.

Minister of Industry Mohammad Shariatmadari also addressed the conference, saying governmental monopoly over industries has grounded them.

"Governmental ownership has been a real challenge to the auto industry. The government should bring down to zero its share of ownership," he noted, adding that talks are being held with Iran-Khodro and the other major car maker Saipa to privatize the companies.

He also said that the government is preparing support packages for industries in the country, including 100 trillion rials (1 US dollar = 42,000 rials) from the National Development Fund, 100 trillion rials more from government resources, as well as 100 trillion rials via banks and private sector.

"Today there are 30 auto enterprises in Iran, making 3.5 percent of the country’s GDP. The industry’s added value is 18.5 percent of that of the entire industries of the country," Shariatmadari noted.

The minister said the Iran envisions taking the 5th place in Asia and 11th place in the global car market by 2025.

He also noted that there are some 1,200 auto part makers in the country, and they should be merged into a big conglomerate.

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