Page 59 - IRANRptSep22

Iran re-authorises imports of finished cars after four years
Output of Iran’s top three automakers falls 3.7% in last Persian year
such as Continental. Brands include Yazd Tire and Barez. Iran stands as one of the largest tyre manufacturers in West Asia. Around 20mn tyres are produced annually in the country.
In terms of produced tyre tonnage, the three-month period saw production of 62,494 tonnes, down 2% y/y. Of that tonnage, 39,083 tonnes was made up of tyres for passenger cars, up 6% y/y.
Light truck tyre output decreased by 18% y/y to 5,620 tonnes. Production of truck and bus tyres fell by 10% y/y to 12,056 tonnes.
The production of tyres for agricultural machinery dropped by 12% y/y to 4,835 tonnes. Tyres used by the road construction and industrial equipment sectors amounted to 900 tonnes in weight, down 20% y/y.
Iran also produced 4,392 tonnes of bicycle and motorcycle tyres in the first Persian calendar year quarter.
Hamidreza Abdolmaleki, head of the Association of Tyre Industry Guilds of Iran was quoted by Mehr as saying he hoped that Iranian tyre companies would enter the Russian market in the near future. Some contracts in this respect were already concluded, he said.
Iranian tyre producers already export product to countries including neighbours Afghanistan, Iraq, Azerbaijan and Armenia.
Trade officials in Iran report satisfaction that there are no complaints that Iranian tyres are of inferior quality to European ones.
Iran’s Pirozhi Tire brand was launched on the basis of Italian Pirelli designs in conjunction with Iran’s Pars Tire Company.
Barez was launched on the basis of a joint venture with Germany's Continental.
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
59 IRAN Country Report September 2022 www.intellinews.com