News ID: 166707
Published: 0721 GMT August 12, 2016

Automotive industry development has begun

Automotive industry development has begun

By Biyuk Alimoradlou*

While Iran has been involved in car production for many years, most people overlook two important points in the automotive industry.

The first is that Iran has been under sanctions which prevented a growth in the industry. If there had been no sanctions on Iran, we wouldn't have faced the problems currently encountered in production and marketing.

The second is the lack of attention to research and development (R&D) on the road to becoming a car producer.

According to managers of the automotive industry, we have not become a real car producer yet and we first need to invest more on car designing.

Fortunately, one of the positive steps which can make us a car producer has been taken during the eleventh government.

Prior to the implementation of Joint Comprehensive Plan of Action (JCPOA), there was no hope for the industry which was witnessing a declining trend. However, good events were observed in Iran's car industry following the implementation of JCPOA and many people are waiting for the industry to pick up.

I believe that the development of automotive industry has started in a calculated and fundamental manner. So in the near future, we would get good news as this industry can create a large number of jobs.

One of the good signs which instilled hope in the future of the industry was the signing of a contract with French giant Peugeot to establish a joint car production company.

The contract called for manufacturing new models which will be marketed by mid-March 2017.

Other models will be ready in the coming years and the automotive industry will experience an eye-catching growth.

A number of experts have however criticized the contract saying that the jointly produced car would be too expensive. The answer is that the final sale prices will be determined according to technical specifications of the car. Powerful engines and more options of the cars will result in higher prices.

The jointly produced car will possess the world's latest technology and this may push the final price to $20,000.

The actual price will not be based on predictions and will be announced once the car is produced. However, the price will fluctuate according to the options available. For example, the Peugeot 301, which will have a lower price tag, will of course have fewer options available to buyers.

The new models will make the market more competitive and buyers will have more options to choose from.

It is not logical to stick to old methods and car producers should move towards joint production.

We should not use automobiles which are entirely produced overseas. I believe that the current trend in our automotive producers is logical and can entail a growth in the industry.

Based on Vision 2025, Iran must produce three million cars annually. So cooperation with various companies will help achieve this goal.


*Biyuk Alimoradlou is a member of Iran's Auto Policy-Making Council.

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