Page 53 - IRANRptJun22

9.1.2 Automotive sector news
Output of Iran’s top three automakers falls 3.7% in last Persian year
Iran reversal of ban on foreign car imports ‘mysteriously stalls’, leaving consumers with ‘death wagons’
Iran’s top three automakers—Iran Khodro Corporation (IKCO), SAIPA Group, and Pars Khodro—made 867,363 vehicles in the last Persian calendar year (ended March 20), marking a decline of 3.7% y/y, IRNA has reported, citing data from the Securities and Exchange Organization’s Codal information service.
IKCO’s output reportedly fell 6% to 451,121 vehicles (including 297,817 Peugeot cars, 50,095 Samand, 50,257 Dena and 35,630 Rana), while SAIPA’s volume decline 3.4% to 304,533 vehicles and Pars Khodro’s production total dropped 6.4% to 109,838 vehicles.
The Industry, Mining and Trade Ministry’s auto manufacturing target for last year was 1.2mn units.
In January, Industry, Mining and Trade Minister Reza Fatemi-Amin said that this year would see the structure of the country of 84mn’s automobile industry and relations between parts manufacturers and automakers reformed in order to boost production.
An initiative to reverse a longstanding Iranian ban on the import of foreign cars to meet surging customer needs has mysteriously stalled, RFE/RL reported on April 17.
The situation leaves consumers faced with buying vehicles from a domestic automaking industry accused of rampant corruption and putting "death wagons" on the road, the media outlet reported.
Focusing on domestic automaking was part of Tehran's efforts to develop a "resistance economy" that would lessen dependence on foreign technology and potentially boost export revenue in the face of heavy US sanctions. However, auto production has reportedly fallen significantly in the country and, despite rising complaints about abnormally high prices and concerns about the quality and safety of domestically produced cars and Chinese imports, there are said to be far more potential customers than available vehicles.
In a high-profile case in the city of Behbahan that demonstrated poor safety levels of Iranian cars, investigators concluded, after a massive pileup in January, that the airbags in nearly 60 Iranian vehicles had failed to deploy, resulting in five deaths.
"What kinds of cars do we have? Why do we produce death wagons?" asked traffic police chief Kamal Hadianfar. "Why are standards not met?"
9.1.3 Aviation sector news
Iran ‘in discussion with China, Russia over new airports’
Iran has entered into discussions with both China and Russia over new airports, Iranian Labour News Agency (ILNA) reported on February 1. Tehran has lately launched a 25-year cooperation deal with China and moved to finalise a 20-year cooperation deal with Russia. The deals open the way to the ramping up of Chinese and Russian investment in Iran, respectively. However, the 54 airports Iran already has are generally lossmaking. Managing director of Iran’s Airports Company, Siavash Amirmokri, was quoted as saying that after preliminary studies and negotiations, Tehran would begin talks over technical matters including navigation systems. On a 20- to 25-year timescale, there were no immediate plans for new airports, he added.
ISNA reported in late 2016 that only half a dozen of Iran’s airports were profitable, up from three in 2013. Since the US reintroduced the imposition of
53 IRAN Country Report June 2022 www.intellinews.com