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Iran’s president gives country’s automakers dressing-down after unannounced tour of IKCO
agency also reported.
Iran, like neighbour Turkey, has not imposed any war sanctions on Russia. Prior to the sanctions wave directed at Russia, Iran was the most sanctioned country in the world. Its automotive sector has struggled to overcome sanctions impacts over several years, sourcing components on the grey market from abroad and building up domestic knowhow in parts production. Former industry, mining and trade minister Alireza Razm Hosseini said last July that the total annual value of imported contents used in Iranian car manufacturing had been cut by $2.5bn. "Thanks to the efforts of automakers and component makers, the $4 billion dependence of the automotive industry on foreign companies has been reduced to $1.5 billion today, and the depth of internalisation has increased," he said.
"The achievement is due to the blessings of sanctions, and with the cooperation of auto parts manufacturers and the support of car manufacturers, we have succeeded in localising a large part of car components," secretary of the Iranian Auto Parts Manufacturers Association (IAPMA) Arash Mohebinejad said, speaking around the same time as the ex-minister.
Iran’s auto industry accounts for around 10% of Iranian gross domestic product and 4% of employment in Iran, IRNA said.
After paying an unannounced visit to Iran’s largest automaker Iran Khodro Corporation (IKCO) just outside of Tehran, Iranian President Ebrahim Raisi issued a series of executive orders to the domestic auto industry including an instruction that production should be pushed up by 50% in the new Persian year (starting March 21), local media reported on March 3.
The sudden appearance of Raisi was reportedly prompted by widespread public complaints about the poor quality of Iranian-made cars and an expression of dissatisfaction from Supreme Leader Ayatollah Ali Khamenei in this regard. During a tour of an IKCO depot, Raisi, according to IRNA, described as “unacceptable” the large number of incomplete cars waiting for components, the supply of which has been hampered by the company’s hefty outstanding debts.
There is a sense in Iran that officials are poised to press for a ramping up of activity across different industrial sectors in line with the relaunch of the 2015 nuclear deal, or JCPOA, between Iran and major powers. An agreement on restarting the JCPOA may be imminent, though there is always the chance that the negotiators at the Vienna nuclear deal talks won’t get one over the line. Raisi also demanded that IKCO starts producing a new “affordable” vehicle, with up-to-date technology. From late March, he said, the company should halt production of antiquated models, namely the Peugeot 405, Peugeot Pars (406 montage) and the ever-popular original Peugeot 206 model.
Raisi also observed that the automaker needed to push ahead with the production of electric vehicles (EVs).
IKCO and subsidiary Jetco announced in January that they had successfully produced their first EV in the form of the new Tara sedan.
It is thought that the IKCO Tara all-electric-version will be released to the market by April; however, significant delays, in part due to ongoing supply issues, may put back the official release until later in the year.
9.2.3 Aviation corporate news
IRGC general
A middle-ranking general of Iran’s Islamic Revolutionary Guard Corps
73 IRAN Country Report June 2022 www.intellinews.com