Page 34 - IRANRptMay19

shows.
The collapse in the value of the Iranian rial (IRR) as a consequence of renewed US sanctions has forced much of the car buying Iranian public out of the market. Automakers and parts suppliers, meanwhile, have been hit by a series of shocks including foreign partners leaving the country due to the US action and big increases in the prices of components.
According to the data, van production dropped from 133 units in the Persian month that ended on January 20 to 35 units in the following local calendar month. Production of industrial vehicle maker Iran Khodro Diesel (IKD) fell to no vehicles produced.
Small independent manufacturer Soroush Diesel, an assembler of Hyundai-branded small lorries and vans, saw a 63% reduction y/y, producing 85 units.
9.1.3 Transport sector news
More Iranians opted to stay at home during the recently concluded long Persian New Year Nowruz holidays, data released by the Iran Civil Aviation Organisation (CAO) shows.
Iranians’ spending power has plummeted since the US last year introduced its toughest ever sanctions regime aimed at Tehran. The Iranian rial (IRR) has collapsed against the dollar, losing around 70% in value, while annual inflation has leapt to around 30%.
According to the data, international airport traffic in Iran decreased 50% y/y during the holiday period (March 17- April 6) while domestic flights fell by 15-20% y/y.
A total of 25,546 flights were seen at Iranian airports during the period, carrying more than 3.17mn passengers.
Tehran’s biggest international terminal, at Imam Khomeini International Airport City (IKA), saw the bulk of travellers during the holiday season, with 3,253 flights carrying 546,183 passengers. This was followed by the older Mehrabad (THR) airport, largely used for internal flights. Mehrabad, closer to Tehran city centre than IKA, recorded 2,685 flights carrying an unspecified number of people.
Middle-class tourists who have in previous years headed in their droves to neighbouring South Caucasus nations m ostly opted to stay in-country and head to private residences. Despite the reduction in Iranian travel abroad, nearby Georgia did note a 21% increase in passenger traffic during Q1 2019, with 314,065 people entering and leaving the country by air.
A second Indian container ship has reportedly docked at Iran’s sole oceanic port of Chabahar, under development as a trade hub in a deal between Tehran and New Delhi that enjoys protection from US sanctions.
Iranian media reported the arrival on February 12.
India and Iran have created a shipping line to help develop the Gulf of Oman port’s processing of imports and exports. Indian goods are to reach as far as Europe after moving along the 7,200-kilometre multimodal International North-South Transport Corridor (INSTC) which, like the port, is under development.
The INSTC is to connect India to northern Europe via a corridor running through Iran, Azerbaijan and Russia with direct Indian Ocean sea routes between western India and Chabahar forming the first stage of transit. Rail routes running from Iran and through Azerbaijan to Moscow are also to be
34 IRAN Country Report May 2019 www.intellinews.com