Automakers Still Work With Iran Despite Sanctions image

Despite rigorous sanctions, some automakers still export or have manufacturing agreements with Iran.

Some automakers are still supporting the regime in Iran offering state-owned companies access to advanced technologies that are often used for the Islamic Republic’s military and security apparatus. United Against a Nuclear Iran declared that Fiat, Isuzu, Kia, Mazda, Mitsubishi, Nissan, Peugeot, Renault, Suzuki, Toyota and Volvo are the companies which either export or have manufacturing agreements with car companies controlled by Iran.

After oil and gas industry, domestic auto industry is Iran’s second most lucrative and has boomed over the past 15 years, as the Islamic Republic deemed it a priority industry. Through its joint venture with Khodro, Peugeot is the leading foreign car brand produced and sold in Iran, the exports in this country accounting last year for around 13% of its global deliveries. In the first quarter Khodro produced 150,000 Peugeots and in 2010 it manufactures 510,167 units. However, this month Peugeot said the company is putting at least part of its business with Iran on hold.

Although, due to harsh sanctions, buying foreign cars becomes harder, the Islamic Republic’s domestic car industry may yet get a boost, since Iran begins to support the economy by buying domestically-produced goods.