Iraq’s auto industry restoration

Iraq is looking for Iran and China support

Asr-e Khodro: Iraq’s government decided to reform and reorganized the auto industry, while their economic development is improving quite slowly.

According to Asr-e Khodro: Based on ISNA report, in order to achieve this target they have made the decision to provide capital for an auto assembly plant, located in ۴۰ km south Baghdad, so that brand new cars can be produced.

They have also announced that Iraq’s government will be cooperating with manufactures like Toyota, Mercedes Benz and Renault and also with Iran and China. They intend to provide the required parts from Iran and China as well.

Based on published news, most popular brands are Toyota, Mercedes Benz and Cherry in Iraq’s market.

Iraq’s resolution is to localize ۱۰۰% of procedure in the next ten years. Since, the economic infrastructure is not suitable yet, it is predicted Iraq’s auto industry needs more years to be established.

Industry in Iraq has only ۲% of the GNP (growth national product) thus, in order to increase this number, Iraq’s government has invested $ ۲ m in ۲۶۰ manufactories during the past three years ۷۶ of which are governmental.

Iraq’s government auto industry company was established in ۱۹۷۶; however, it was inactive from ۱۹۹۱ to ۲۰۰۵.

Quoting Reuters, the above-mentioned company has signed ۴۲ million dollar contract with Scania to produce ۵۰۰ trucks. Besides, they have agreement with Mercedes Benz and Renault for truck assembly as well.

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