The US withdrawal from the Joint Comprehensive Plan of Action (JCPOA) and the impending reimposition of sanctions have not only caused a currency crisis in Iran but also led French automakers such as Peugeot and Renault to leave the Iranian market, creating a shortage of parts.
The auto sector is Iran’s second largest industry, valued at an estimated $26 billion. It is made up of both private and state-owned enterprises engaged in vehicle production as well as 1,200 businesses that are involved in making parts. Despite the presence of a multitude of companies, Iran’s auto industry is in fact rather exclusive. Indeed, the two main state-owned companies, Iran Khodro and Saipa, control more than 90% of production and sales. Now, however, both of these companies are facing a crisis that primarily stems from the US withdrawal from the JCPOA.
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