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Iran's production of tires exceeds demand

Business Materials 12 June 2021 12:07 (UTC +04:00)
Iran's production of tires exceeds demand

TEHRAN, Iran, June 12

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Spokesman of Iran's Tire Industry Association Mostafa Tanha predicted a growth of 26 percent in tire production by the end of the current Iranian year (end on March 21, 2022), Trend reports via IRNA.

"If the market conditions change, production plans will change as well, unless there is an opportunity for exports," Mostafa Tanha said.

“The policies and decisions of the last few years have caused the market to be saturated with different types of tires, but manufacturers are worried about losing distribution networks,” he said.

"These days, the market is full of car tires,” he said adding that due to the record-breaking manufacturers last year who exceeded the production limit of 25 million tires, also including the imports. So currently, the supply is greater than the demand.

He went on to say that this situation in the long run will lead to a reduction in production by factories.

“In the current situation where the market needs are sufficiently met, the government must allow the producers to export of some products, including passenger car tires," Tanha said.

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