Page 58 - IRANRptOct22

Iran re-authorises imports of finished cars after four years
Output of Iran’s top three automakers falls 3.7% in last Persian year
Iran has introduced a long-awaited decree that re-authorises imports of finished cars more than four years after such imports were banned to protect Iranian automakers and reduce hard currency spending, the official IRNA news agency reported on August 27.
Under the decree, approved by the cabinet on August 17, Iranian importers will be able to bring in finished cars with a value of below €20,000, though the priority will be cars worth below €10,000. The cars will be sold to buyers on the Iran Mercantile Exchange.
The value of total annual car imports permitted under the new law should not exceed €1bn.
The news agency added that car imports for Iran’s free trade zones (FTZs) would be restricted to hybrid or all-electric cars.
Iran imposed its ban on imports of finished cars in 2018 after the reintroduction of heavy US sanctions on Tehran hit Iranian oil export revenues and undermined the competitive standing of Iranian automakers by squeezing supply chains for components.
Iran’s industry ministry reportedly anticipates that around 100,000 cars will be imported into the country under the changed legislation in the next 12 months. However, the ministry warned on August 27 that it would set strict standards for car imports. Standards will relate to matters such as the need for a sufficient number of established dealerships and the requirement for smooth supplies of parts to the Iranian market.
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.
9.1.4 Aviation sector news
40% of Iran’s commercial aircraft fleet grounded by sanctions squeeze on parts says civil aviation chief
Around 40% of Iran's commercial aircraft fleet of around 330 planes are inactive, largely because of the unavailability of parts caused by US sanctions, according to the country’s civil aviation chief, as cited by ISNA.
Mohammad Mohammadi Bakhsh said planes were generally out of action because of parts supply shortages or engine problems.
Bakhsh noted how plane and aircraft parts suppliers terminated contracts and cut off after-sale services arranged with Iran after the US restored heavy economic sanctions on the country in 2018.
Should the sanctions be removed once more under a revived nuclear deal, or JCPOA, that Tehran and Washington are attempting to negotiate, Iran may look at returning to multi-billion-dollar deals with aviation giants Boeing and Airbus for the supply of scores of passenger jet aircraft.
58 IRAN Country Report October 2022 www.intellinews.com