/ Industry, News / Iran’s automotive industry is slowly recovering

Iran’s automotive industry is slowly recovering

Linked In Share
Iran’s automotive industry is slowly recovering

While initial reactions from automakers after the sanctions were lifted have been positive, the Iranian automotive industry faces a long road on its way to recovery, mainly because of the bad state of the auto parts business.

Even worse, after initial prompt reactions form French carmakers like Renault and PSA who said they would rush to resume production, silence has settled from the big automakers – a good example being a gathering organized by the Iranian Auto Parts Manufacturers Association who utterly failed after 22 officials and vehicle manufacturers from the guest list were nowhere in sight.

Iran’s roughly 2,000 auto parts manufacturers are growing thin, as hundreds of them became bankrupt or switched to other business areas when sanctions on Iran’s trade were imposed by the US and EU.

“The pressure that banks exert on parts makers is far bigger than the Tax Organisation,” said Farhad Behnia, a member of the auto parts association. “Out of 860 members of the association, 20 % have shut down their factories. Everywhere in the world, governments decrease bank rates to support producers,” he added.

The auto parts producers also need help from the government, as the high interest rates on loans, usually at 25-30% were not decreased by the new government and the sanctions caused a high level of inflation – severely decreasing the purchase power of the typical Iranian customer.

Via Financial Times

by Aurel Niculescu (my Google+) - Thursday, February 27th, 2014 - filed under Industry, News. Image credit: .
Linked In Share
Related Articles
auto parts suppliers automotive industry iran


Discuss: Iran’s automotive industry is slowly recovering

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Fiat cuts 500L production in Serbia on market slowdown
Fiat cuts 500L production in Serbia on market slowdownFiat announced that it has temporarily stopped production at its plant in Serbia. The factory started building Fiat’s 500L ...
China: Wuling brand prepping a BMW i3 copycat
China: Wuling brand prepping a BMW i3 copycatWhile the Chinese regulators are on an all out war mainly against foreign brands for reportedly charging customers a lot more on ...
Mercedes-Benz S500 plug-in hybrid priced from £87,965 in the UK
Mercedes-Benz S500 plug-in hybrid priced from £87,965 in the UKThe German premium automaker has revealed pricing details for the UK market of the S500 plug-in hybrid model, with deliveries ...
[Video] Jeep Grand Cherokee SRT shows its worth on the track
[Video] Jeep Grand Cherokee SRT shows its worth on the trackThe Jeep Grand Cherokee SRT has been recently updated, but before we can see it a t work, here’s a video of Matt Farah from The ...
[Video] Lincoln introduces the 2015 Navigator
[Video] Lincoln introduces the 2015 NavigatorRevealed back in January and making its official public debut during the Chicago Motor Show, the 2015 Lincoln Navigator is now ...
Audi confirms TT Roadster for Paris debut and TT RS staying with five-cylinder turbo
Audi confirms TT Roadster for Paris debut and TT RS staying with five-cylinder turboAmong the larger debuts this year is the reveal of the third generation of the TT sports car. After being presented to the public ...
[Video] Hot Russian blonde reviews the Renault Logan
[Video] Hot Russian blonde reviews the Renault LoganAfter digitally conquering the World Wide Web with their numerous dash cam videos, Russians could open a new business sector – ...
[Video] See a brand new Jaguar F-Type burned to crisp in Germany
[Video] See a brand new Jaguar F-Type burned to crisp in GermanyWe’re sure you’re naturally reluctant to see the potentially disastrous consequences of a car fire, especially when the ...
Peugeot 208 HYbrid Air demonstrator officially unveiled
Peugeot 208 HYbrid Air demonstrator officially unveiledPeugeot has taken the wraps of the 208 HYbrid Air 2L technology demonstrator, a concept that is scheduled to make its official ...
Report – Next-generation VW Polo to feature better styling and technology
Report – Next-generation VW Polo to feature better styling and technologyThe Polo subcompact model has been refreshed at the start of the year, but already reports are coming in about the next ...
[Video] Facelifted Audi S6 gets first video presentation
[Video] Facelifted Audi S6 gets first video presentationThe German automaker is busy this fall with a number of new model introductions. Chief among them is of course the revamp of the ...
Volkswagen Amarok Dark Label Edition finally heading to UK
Volkswagen Amarok Dark Label Edition finally heading to UKThe Amarok Dark Label special series is not new, actually being announced exactly one year ago, but it’s only now it had the ...
Next-generation Renault Koleos spied for the first time
Next-generation Renault Koleos spied for the first timeThe now aging compact SUV will get a worthy successor next year, and now we have the first spy shots of the car’s prototype ...
US: Record recall for smallest Swedish automaker Koenigsegg
US: Record recall for smallest Swedish automaker KoenigseggIf you take a look at the news that surround the US automotive industry you’ll see that the ones that signal the health of the ...
[Videos] Porsche Boxster with 4-cylinder spied
[Videos] Porsche Boxster with 4-cylinder spiedThe third generation of the acclaimed sports car – the 981 series – is ready to also feature the smallest displacement engine ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

city-car-ev-china-2
Mercedes_S500_plugin
2015 Lincoln Navigator
peugeot-208-hybrid-air
VW_Amarok_dark
Spy-Shots of Cars
2015 Jaguar XE Image 25
2014 Salon Privé 01
lagonda-testing-01-1
Kahn_range_evoque
Jaguar-XE-leaked-helicopter
2015 Peugeot 308 GT 01

More automotive from inautonews
Fiat announced that it has temporarily stopped production at its plant in Serbia. The factory started building Fiat’s 500L small minivan midway through 2012. The Italian carmaker stated that “the causes of this temporary setback are external and related to situation in the European and global ...
read more
Inautonews Editors Section
Can Ricciardo do a Prost ’86?
Can Ricciardo do a Prost ’86?For the third time this season, Mercedes faltered in their 1988-esque campaign and there’s only one man ready to pounce whenever opportunities ...
Test Drive – Mercedes-Benz E250 CDI 4Matic
Test Drive – Mercedes-Benz E250 CDI 4MaticDaimler’s passenger cars division – which consists of the Mercedes-Benz and Smart brands – has vowed to recover the distance from its German ...
Top 10 Ferrari F1 drivers No.2 Alberto Ascari
Top 10 Ferrari F1 drivers No.2 Alberto AscariLike his father he was so fast, sometimes perhaps too fast. In pure natural speed and car control no driver could hold a candle to Alberto Ascari in ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety US: Record recall for smallest Swedish automaker KoenigseggIf you take a look at the news that surround the US automotive industry you’ll see that the ones ... Recall roundup: Ford Focus in ChinaFord, which counts the Focuse model as its best-selling nameplate in the world’s largest auto ...
Safety Section