According to the forecast of the Iranian government, with the lifting of the import ban, more than 100,000 cars will be imported into the country next year (Irish calendar year). Although the Iranian government has opened up the import of cars, the import tariffs on cars will remain unchanged. Between 40-75%.....
Last week, the speaker of the Iranian parliament officially announced to the Ministry of Industry, Mining and Trade a five-year license for the import of automobiles, INA reported. The Ministry of Industry, Mining and Trade will formulate regulations for the import of automobiles, including the import conditions, prices, displacement and tariffs of automobiles. According to the forecast of the Iranian government, with the lifting of the import ban, more than 100,000 vehicles will be imported into the country next year (Irish calendar year), and the output of the local automobile manufacturing industry will continue to increase. By then, the two-pronged approach will enable the country to The auto market is in equilibrium.
Fatemi Amin, Minister of Industry, Mining and Trade of Iran, said that the current development level of Iran's automobile manufacturing industry cannot meet the market demand. At present, the annual production of cars in Iran is only about 1 million units, which is far from the market demand of 1.5 million units, so the government decided to open up the import of cars.
In the budget bill for the new fiscal year, the government plans to import 70,000 passenger cars in the next fiscal year, meeting the needs of the public as well as the government's financial needs. So, although the Iranian government has opened up the import of cars, the import tariffs on cars will remain unchanged at 40-75%.
Production of domestically produced vehicles in Iran is set to increase by 50 percent in the coming year, and under the leadership of the government, local automakers will launch new models to diversify their products and meet consumer demand. In this way, Iranian car companies will be able to achieve breakthroughs and get rid of the current development predicament.
In order to control the loss of foreign exchange resources, Iran has banned the import of automobiles since 1397 (2018), and the ban will expire in May this year.
iranian car market
Iran's two major car companies, Iran Khodro (IKCO) and Saipa (SAIPA), account for more than 90% of Iran's total production, and both belong to the Iranian Revolutionary Guards industry. Although it has enjoyed years of policy inclination and financial inclination, it has long been criticized by the Iranian people in terms of quality and selling price. Iranian car companies have implemented pre-sale of new cars and lottery, but the people who won the lottery have been unable to mention the vehicles for a long time, which further deepened their complaints.
The first to enter the Iranian car market was the French. The French laid the foundation of Iran's auto industry, and Peugeot and Renault products dominated the Iranian market for many years. At present, the largest car company in Iran, Khodro (IKCO), made its fortune relying on the cooperation with Peugeot, so the French car has a far-reaching influence on Iranian cars.
According to automotive media reports, since 2007, the annual sales of Iranian cars has exceeded 1 million, and in 2011, it hit a record high of nearly 1.6 million, ranking 15th in the global market. According to the International Association of Automobile Manufacturers, Iran produced more than 1.5 million vehicles in 2017, making it the 12th largest car producer in the world. The Iranian auto industry employs more than 700,000 people, covering more than 60 related industries, and occupies a very important position in the Iranian industrial system.
The future of China, Iran's auto industry
French carmakers have pulled out of the Iranian market for fear of U.S. sanctions on them after the U.S. announced its toughest economic sanctions on Iran. The only ones still stationed in Iran are Chinese car companies. Especially after China and Iran signed a 25-year long-term cooperation plan, the cooperation between Chinese car companies and Iran has become closer.
Although the specific details of the China-Iran 25-year long-term cooperation plan have not been disclosed, there is reliable news that the two countries will carry out closer cooperation in accordance with the China-Iran 25-year comprehensive cooperation plan. According to the draft, China will cooperate with Iran to build an auto industry town, which will carry out issues related to product design and road testing. In this way, the Chinese can participate in the Iranian auto industry more deeply and widely than before, and even replace the Europeans.
In recent years, Chinese auto brands have continued to grow and develop in the Iranian market, and their market shares have continued to expand. In 2002, Chery was the first Chinese brand to enter the Iranian auto market. Now, there are more than ten Chinese automakers including Brilliance, BYD, Changan, Dongfeng, Geely, and Jianghuai. Cars are sold in Iran through joint ventures, of which Chery has done the best, and now has a market share of 6% in Iran. Now, the total market share of Chinese cars in Iran has exceeded 20%. In 2018, Iran has become the largest destination for Chinese auto exports.
