Iran to export 30% of domestically produced cars

Reporting "Asre Khodro", He also pointed to the ongoing talks between the Iranian auto companies and their foreign counterparts, saying that the issue has already been raised during the negotiations.

“Right now, we are in talks with reputable auto companies. During these talks, it has already been emphasized that 30% of the cars produced in Iran will be exported overseas,” the Iranian minister reiterated.
“At present, Iranian car manufacturers produce up to 1.6 million cars annually. All of these cars meet national standards,” he noted, adding that the auto companies seek to promote the quality of their products.

Back in July, the CEO of Iran Khodro Industrial Group (IKCO), Iran’s leading car manufacturer, says IKCO is in final talks with four major foreign companies to set up joint ventures.

Hashem Yekeh Zareh said IKCO has finalized a new contract with its French partner, Peugeot, which will be inked soon.

Under the new agreement, IKCO will have access to Peugeot’s export market via setting up a joint venture, said the Iranian official.

The automobile industry is seen as Iran’s biggest non-oil sector, accounting for nearly 10% of the country’s gross domestic product (GDP).

Iran Khodro and Saipa companies account for more than 90 percent of the total domestic production in Iran.

Latest data shows that Iran ranks 18th on the list of the world’s top auto manufacturers.

The 2014 production statistics by the International Organization of Motor Vehicle Manufacturers (OICA) indicate Iran’s auto production increased by 46.7 percent in the 12-month period.

Sanctions on Iran hit the automotive industry hard, slicing production by 1 million units from its peak of 1.6 million in 2011.