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Japan traders back in Iran with a vengeance

Japanese automakers are looking to restart exports to Iran.

Japanese automakers are looking to restart exports to Iran as Prime Minister Shinzo Abe's government is moving quickly to lay the groundwork for investment in Iran, a leading Tokyo-based newspaper says. 

Foreign Minister Fumio Kishida will arrive in Tehran Monday to strike a basic agreement for an investment pact. Prime Minister Abe is also considering to visit Iran late this year, Jiji Press reported, citing informed sources.

The Nikkei, the world’s largest financial newspaper, said Nissan Motor has informed parts suppliers that it may resume shipments to Iran sometime next spring.

“It would send so-called knockdown kits, to be assembled locally, rather than finished autos,” it said, adding the automaker is looking to export kits for several thousand vehicles a year.  

Suzuki Motor is readying to ramp up exports of auto components for assembly in Iran while introducing new models to the Iranian market once the sanctions are lifted.

The company began producing around 4,000 sport-utility vehicles a year there in 2005, but the sanctions have reduced output to a trickle since 2012, The Nikkei said.

Another automaker, Isuzu Motors, plans to resume exports of light trucks and other models to Iran while Toyota Motor is weighing to restart exports to the country in earnest after the sanctions end.

Mazda Motor resumed exports of some auto parts to Iran in April in response to an easing of US and European sanctions. According to The Nikkei, the company will consider expanding exports to the country.

International carmakers are eyeing the Iranian market of 80 million people who bought 1.1 million cars last year.

Meanwhile, Prime Minister Abe hopes his visit to Tehran will strengthen Japan’s economic relations with Iran, Jiji Press said.

Iranian President Hassan Rouhani (4th L) and Japanese PM Shinzo Abe (1st R) hold a bilateral meeting on the sidelines of the Asian Africa Conference in Jakarta in April.

He will make a final decision on the trip after taking into account his political schedule and assessing the progress of Iran’s nuclear accord, it added.

Japan and Iran have traditionally maintained a friendly relationship. Abe will be the first Japanese prime minister to travel to Iran since Takeo Fukuda visited the country in 1978 before the Islamic Revolution. 


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