Iranian production of vehicles has risen 40 percent in the first five months of the present Iranian calendar year (which started March 20) compared with the corresponding figure last year.
During the first five months of this year, 110,000 vehicles were manufactured in the Islamic Republic, reported Iran Daily newspaper. Industry experts expect this figure to reach 360,000 units by the end of the year. This rise in production will be partially driven by the new Peugeot “Persia” production line, which will commence operations prior to the end of the year and produce 20,000 vehicles for the local market.
Demand for automobiles in Iran is estimated at between 400,000 and 500,000 annually. The bulk of this demand, therefore, must still be met through imports.
According to Mohammad Ali Seyyed, Iran’s Deputy Minister of Industry, a plan has been submitted to the government whereby owners of aging vehicles would be permitted to purchase new ones with government assistance. The official added that roughly 200,000 motorcycles are produced annually in Iran, and the Management and Planning Organization (MPO) has proposed a bill to be passed by parliament regarding car imports. -(Albawaba-MEBG)
