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Iran’s car industry

Workers assemble cars at Iran Khodro automobile manufacturing plant outside Tehran.

The automobile industry in Iran has a 50-year-old history and people say they’ve had enough of the ever-rising prices and the lack improvement in quality.

Iran is the 18th largest automaker in the world with major companies such as Iran Khodro, Siapa, and Pars Khodro which have been able to fabricate tens of new models over the past couple of decades.

Apart from the local market, the producers have always had international targets in mind to sell their vehicles. One company that’s been successful in that regard is the Iran Khodro Industrial Group also known as the IKCO.

The question now though is whether or not these companies have prepared themselves for the circumstances after the lifting of the sanctions.

You hear people often say they can buy better cars at lower prices on other countries. They’re also complaining about the government’s strict regulation of imported vehicles that only prevented local producers from improving the quality of their products.

In some cases, cars are being sold for more than double their pre-2013 value. The reasons are told to be things such as tariff, taxes or VAT.

The international agreement on Iran’s nuclear program, signed in Vienna on 14 July 2015, has raised new hopes and expectations among Iranians but car prices have stayed as high as before. People reacted using social media.

The campaign is aimed at pushing the auto-makers to improve their standards. Of every 100,000 people in Iran, 34.1 people die in auto-collisions every year. Some experts say that the only ones who benefit from the anti-Iranian car campaign are the importers of foreign-made automobiles. Given the fact that reputable foreign auto-makers are planned to set up shop in Iran, Iranian auto manufacturers claim that they want to have a joint-production with them.


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