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Iran reports 8.8% growth in car output for two months to late May

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
Iran’s car output increases by 8.8% in the two months to late May to a total of 127,700 units.

Iran’s ministry of industries (MIMT) says car output in the country increased in the two months to late May as domestic manufacturers continued to dominate a local market where major international brands have almost no presence.

MIMT figures published on Sunday showed that total car output in the first two calendar months to May 21 had reached 128,700 units, up 8.8% against the similar period last year.

Pickup truck production also surged by 12.9% over the same period to 9,477 units, while truck, small truck and truck cab output increased by 45.5% to 956 units, showed the figures.

Bus, minibus and van production by Iranian automotive companies declined 3.2% against April-May 2020 to 215 units, while tractor output reached 2,036 units, a decline of 23.3% year on year.

Production of combine harvesters was up by 6.9% to 62 units while tire output rose 1.3% against last year to a total of 40,200 metric tons.

Iran has seen a major growth in manufacturing activity in recent years as industries keep consolidating their share of the domestic market on the back of lower imports.

Domestic car makers have benefited from a 2018 decision by French companies to leave Iran to comply with US sanctions.

Iran’s annual car output rose by 19.1% in the year to March 20 against the previous year despite closures at production sites and disruptions to parts supply chains reported last year because of the spread of the coronavirus in Iran.

Central Bank of Iran figures published earlier this week showed that the country’s manufacturing and mining sector had expanded by 7.1% in the year to late March against a 2.3% growth reported for the previous year.

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