Automotive industry in Iran
[1][2][3] Iran developed a significant automotive industry with annual production of up to 200,000 units under the Mohammad Reza Shah Pahlavi's regime.
[citation needed] In 2009, Iran ranked fifth in car production growth standing next to China, Taiwan, Romania and India.
[8] In 2024 July Iran started allowing importing second hand Japanese, Korean and European cars limited to 1 exclusive vehicle purchase per citizen National id card number.
[17] In July 2010, the government sold a further 18% stake in both Iran Khodro and Saipa for about $2 billion in total, bringing down its participation in both companies to about 20%.
[20] Unofficial estimates put the sector’s debt to Iranian banks as high as 100 trillion rials ($4 billion).
[28][29][30] Because of sanctions on spare parts by France's Peugeot and Renault, car production in Iran dropped by as much as 40% in 2012 before recovering somewhat in 2014 following the Geneva interim agreement.
[32] The government has sought to upgrade the local fleet and the authorities aim to pull some 200,000 outmoded vehicles off the road each year, underpinning demand.
[40][41] Sapco and Sazeh Gostar are the respective purchasing arms of Iran Khodro and Saipa (the two largest Iranian auto manufacturers).
[3] The Iranian automotive parts industry consists of approximately 1200 companies (15,000 factories), which include those affiliated to vehicle manufacturers as well as independent firms.
[citation needed] Most cars are produced in Iran under licence from foreign manufacturers and it depends on them for critical imports, ranging from pistons, cylinder heads, valves, starters, alternators, airbags to computer chips (incl.
[45][46] The media has reported that the IRGC is cooperating with the auto industry ( including 32 domestic part makers) to remedy these deficiencies.
In addition to this nanotechnology is being researched for introduction into production lines in order to improve the quality standards and customer satisfaction by offering anti-bacterial seats, anti-scratch paint, hydrophobic glass panes, maintenance-free air filters, anti-stain dashboards, nano-catalytic converters and nano-diamond containing lubricating oils.
In 2009, researchers at Isfahan University of Technology developed a strong but light nanosteel as resistant to corrosion as stainless steel for use in road vehicles but also potentially in aircraft, solar panels and other products.
They are in joint venture with companies such as Dongfeng (China), Peugeot, Citroen (France), Volkswagen (Germany), Nissan (Japan), Toyota (Japan), Kia Motors (South Korea), Proton (Malaysia), Chery (China) and many other established producers of light and heavy vehicles such as Renault (France), BMW, Mercedes Benz (Germany), Daewoo and Hyundai (South Korea) have emerged since 1991.
[51] Anhui Ankai Automobile (also of China) signed a deal in January 2008 with ARG-Diesel Iran to supply it with 600 buses, valued at €51.35m.
Since the 1970s, Iran has been producing a number of different buses, such as German Mercedes and MAN as well as Swedish Scania and Volvo that it has exported throughout Asia.
[52] Daewoo Bus Corp. and an Iranian automaker Ardebil Sabalan Khodrow-Maywan have teamed up to build buses in Iran.
[52] Since 2016 and the lifting of the international sanctions, nearly 40 foreign automakers, including Peugeot, Mercedes, and Toyota, are considering using Iran as a hub for their ME and regional exports.
[citation needed] The nation's abundant oil reserves have enabled the government to keep prices low (Iran is the second-largest exporter in OPEC).
However, low prices have encouraged wasteful consumption and the smuggling of petrol into neighbouring countries such as Turkey, Pakistan and Afghanistan.
However, these have tended to lag the prevailing rate of inflation, and given that raising petrol prices is politically difficult the provision of cheap fuel is likely to persist in the medium term, encouraging the purchase of vehicles.
The government was nevertheless forced to take action in June 2007 when it announced both a petrol increase to 12 cents/litre and the imposition of fuel rationing, much to the chagrin of vehicle owners.
In 2010, the government reduced its participation in Iran Khodko and Saipa to about 20% but the deals were annulled the same year by the Iranian Privatization Organization.
Traditional export markets include Syria, Iraq, Algeria, Egypt, Sudan, Venezuela, Pakistan, Cameroon, Ghana, Senegal and Azerbaijan.
