Weakened rial sparks massive boom in Iran home appliance production
Iranian home appliance manufacturers are churning out a record number of products amid a fall in the value of the local currency that makes foreign brands less attractive to customers.
The official IRNA news agency said in a Thursday report that production of TV sets in Iran had surged by nearly 80 percent in the five months to late August to reach 481,600 sets.
The report said production of washing machines and fridges had also increased by 58 and 18.8 percent over the period to reach 368,400 and 673,800, respectively.
The boom in domestic home appliance sector comes as the national currency rial keeps falling against other currencies helping manufacturers to occupy a market that was once dominated by East Asian and Western brands.
A senior official from the Iranian ministry of industries (MIMT) said that total home appliance output in Iran is expected to top 12 million sets by the end of current calendar year in March.
Kamran Gordan said the government has been offering incentives to manufacturers, including supply of hard currency at discounted rates, to help spark more growth in the sector in the coming years.
However, industry sources said a weakened rial had had its own pitfalls for domestic manufacturers as it restricts their access to raw materials that are imported from abroad.
Akbar Pazouki, a secretary of Tehran’s association of home appliance distributors, said Iranian manufacturers have managed to indegenize up to 70 percent of the parts they use in production processes.
Iran’s manufacturing sector has seen a huge growth since the United States imposed its secondary sanctions on the country after leaving a major international agreement on Tehran’s nuclear activity in 2018.
Government estimates suggest growth in the sector reached nearly 40 percent in the year to March 2020.
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