Iran to Resume Car Production Abroad, from Caucasus to West Africa

Iranian minister of Industry, Mine, and Trade visit to Syria to follow up resumption of car production in the Arab country as well as Iranians’ efforts to pave the ground for resuming automotive assembly line in Senegal enhance hopes for export of Iran-manufactured cars. Iran’s car manufacturing industry has suffered from various challenges and problems in recent years, but Iranian Industry, Mine, and Trade Minister Reza Fatemi-Amin believes that problems such as accumulated losses, improper pricing strategy, debt to auto spare parts manufacturers, and inappropriate supply chain do not mean that Iranians should abandon the industry, IRNA reported.

The minister plans to increase car manufacturing, as he repeated that Iran is going to produce 1.6 million cars in the next Iranian calendar year (March 21, 2022 to March 20, 2023), hoping that the production is expected to increase to three million cars within four years. The administration of President Seyyed Ebrahim Raisi plans to export 30% of the cars to be produced at that time, Fatemi-Amin told IRNA.

The Islamic Republic possesses production lines and sites in Senegal, Republic of Azerbaijan, Syria, and Iraq, which are being developed one by one, and that they can be used to expand Iran’s export capabilities of exporting technological products and services. The minister also said that the car production line of Iran Khodro Company (IKCO), which was closed for a while, has restarted work in Senegal since last week.

Instead of exporting cars, Iran can export spare parts to Syria, Senegal, Iraq, and Azerbaijan Republic in order to avoid tariff obstacles, he mentioned. IKCO deputy director for export and international affairs, Kianoush Pourmojib, told IRNA that following extension of tariff exemption convention by the Senegalese government, Iran Khodro can pave the ground for resuming production activities in the African country.

Head of Iran-Syria Joint Chamber of Commerce Keyvan Kashefi told IRNA that import of cars from all countries to Syria was prohibited in recent years because the Arab state has been facing economic woes since the start of conflicts in 2011. Iran is exporting semi-knocked-down (SKD) cars such as Samand and Dena to Republic of Azerbaijan. A joint car manufacturing company was established 168 kilometers south of Baku, Azerbaijan’s capital, three years ago, which has the capacity to produce 10,000 cars. Iran’s SAIPA exported 211 completely built unit (CBU) vehicles and 1,080 SKDs from March 21 to October 22. - Iran Daily