Tehran, Iran, June 17
By A. Shirazi- Trend:
A member of the presiding board of Iranian Auto Parts Manufacturers Association said the recent decline in the production of cars in the country is due to a lack of spare parts.
The production of car has witnessed a decline in the past weeks due to a lack of spare parts and a significant percentage of cars are now languishing in companies, as they are not receiving their auto parts, Mohammad Reza Najafi-Manesh said on July 17, ISNA news agency reported.
“Unfortunately, with all domestic and foreign issues we are facing in the car industry, a large part of raw materials and auto parts are stuck in warehouses of the Islamic Republic of Iran Customs Administration, with rigid bureaucratic regulations hampering their release,” he added.
According to recent report, draconian customs regulations have stalled the release of imported auto parts, hampering car production and bringing about a 19.6 percent year-on-year decline in Iranian automakers’ output.
He further called on the government to resolve domestic issues around the country’s car industry and help revive car production.
The prices of different models of cars reached record highs on the Iranian market on June 11, rising between to 20 million and 400 million rials over the last month.
According to Iranian media, the rise between 20 million and 400 million rials in the price of cars is due to foreign car manufacturers leaving Iran.
Peugeot Citroen, Mazda and Hyundai are among the car manufacturers that have already left the country due to the threat of US sanctions.
Meanwhile, some other manufacturers have limited their output, and this has led to a further rise in prices.
US President Donald Trump withdrew from the Iran nuclear deal in May, and Washington now plans to reimpose sanctions on Tehran next month. The first round of US sanctions on Iran goes into effect in August, followed by ones targeting Iran's oil exports in November.
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