Planning underway to launch new automobile platform in 3 years

June 14, 2019

TEHRAN – Deputy head of Iran’s Industrial Development and Renovation Organization (IDRO) said the planning is underway for establishing a new platform for manufacturing passenger cars in three years, IRNA reported.

Behzad E’temadi noted that the organization had it on the agenda to produce 650,000 new cars by 2020, however the negative impacts of the U.S. sanctions has imposed some changes on IDRO’s strategies and planning.

“Now, our mid-term goal is to raise the quantity and quality of our current vehicles, so that we could be able to maintain the exports to the neighboring countries,” he said.
According to the data released by Industry, Mining and Trade Ministry, Iranian carmakers manufactured 42,623 vehicles during the first Iranian calendar month of Farvardin (March 21-April 20, 2019). 

The ministry’s data showed that car manufacturing in Iran fell 47.2 percent in the first month of this year from 80,794 cars manufactured in the same month of the previous year.
Iran’s imports of passenger cars also fell 67 percent during Farvardin of this year compared to the same month of the previous year.

Earlier in May, Iranian Industry, Mining and Trade Minister Reza Rahmani said the policy of domestic manufacturing of auto parts should be seriously followed up.
The minister also stressed that in this due the capable manufacturers should be seriously supported, IRNA reported.

Given that 1.25 million vehicles are anticipated to be manufactured in the country during the current Iranian calendar year (ends on March 19, 2020), the part manufacturers will need 150 trillion rials of working capital (about $3.571 billion) for the purchase of raw materials and other required items.

EF/MA

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