Page 37 - IRANRptSep19

Iranian auto components makers lobby for rules relaxation
Iran’s auto production drops 38.3% in four-month period
Iranian auto components makers are lobbying the Ministry of Industries, Mining and Trade to ease rules to help their sector, according to Mehr News Agency. Secretary of the Iranian Auto Part Manufacturers Association, Arash Mohebinejad, reportedly said member companies have four major difficulties, namely a lack of liquidity, pricing, raw material costs and letters of credit. Some of the issues could be addressed by removing government price controls on parts, he added.
Iran’s auto parts makers have suffered in recent years because the country’s two main carmakers, Iran Khodro (IKCO) and SAIPA, have struggled to pay invoice sums owed to them.
In July, IKCO and SAIPA signed a deal with local car component makers worth around $60mn to promote localisation of production, according to IRNA. As part of that agreement, cash—some of which, it is believed, is owed from previous purchases from the parts manufacturers—would be diverted into developing 35 localised car parts, including a head gasket, hydraulic parts and turbochargers.
Auto production in Iran has substantially declined in recent months in the face of US sanctions. Industry figures show that the country’s automakers manufactured 266,961 vehicles in the first four months of the 2019/2020 Persian calendar year (started March 21), marking a 38.3% y/y deline .
In recent months the Iranian auto industry has attempted to pull back on some of its losses with moves including initiatives to switch to the indigenous production of car models.
The hotly anticipated Peugeot 301 sedan, recently showcased by Iran Khodro Company (IKCO), was produced without any direct help from Peugeot. Some 60% of its parts are purportedly from Iranian manufacturers, with the percentage expected to increase to 85% in the next few months.
9.1.3 Aviation sector news
Iran’s airport traffic falls 5% y/y in fourth Persian calendar
Iran’s airports saw some 34,065 take-offs and landings during the fourth 2019/2020 Persian month (June 22- July 22), marking a 5% y/y decline, Tehran’s Financial Tribune h as reported.
Iranian travellers, both domestic and international, have felt the pinch in the past year with flight prices increasing because of the severe weakening of the Iranian rial (IRR) sparked by US sanctions.
A total of 4.19mn passengers and 42,300 tonnes of cargo were reportedly transported via Iranian airports during the fourth calendar month, registering 6% and 4% contractions year on year, respectively.
Domestic flights accounted for 27,928 of the recorded take-offs and landings. That figure was also down 5% y/y. Also, the number of domestic passengers, at 3.2mn, fell 6% y/y, while the figure of 23,158 tonnes of domestic cargo was down 5% y/y.
International flights followed a similar path, with some 6,137 flights in and out of Iran showing another 5% y/y drop. They transported 997,053 passengers and more than 19,200 tonnes of cargo. Those figures were lower by 5% y/y and 2% y/y.
The data showed Tehran’s older Mehrabad Airport remained the busiest airport in the country. It handled 1.19mn of the domestic flights. Meanwhile, Mashhad International, in the northwest of the country, recorded some 900,979 passengers during the one-month period. Imam Khomeini International Airport, or IKIA, Tehran’s main international departure and arrival
37 IRAN Country Report September 2019 www.intellinews.com