MASHHAD Iran needs 500,000 small cars and vans each year to meet its demand, Head of the Majlis Industries and Mines Commission, Reza Norouz-Zadeh has said.
He said seven auto making factories in the country produced only 300,000 such cars annually and so Iran has to increase domestic auto production instead of importing foreign brand cars.
"In order to increase production and promote the quality of automobiles manufactured in the country, Iran can by no means bring about competition among domestic carmakers by importing vehicles," he said.
"The only way to upgrade the quality of domestically produced cars is to purchase technological know-how, get access to world markets and renovate production line," he added.
Norouz-Zadeh said the world's annual demand for mini-cars stands at 80 million and car manufacturing is one of the most lucrative industries, with a large capacity for job creation.
"By expanding its industry, Iran can meet demand for three million cars among European, Far East as well as the Central Asian nations." He said, due to its closeness to Turkmenistan, the northeastern Province of Khorasan could turn into an important hub for producing and exporting cars to the Central Asian countries.
The official stated that over 30 percent of car spare parts are manufactured in the province which has a big share in total investments of the country in this industry.
(IRNA)