Irans Auto Sector: Coronavirus pandemic, sanctions

Financial Tribune – Amid the COVID-19 crisis, Iran’s automotive industry will only survive if the government once again places it on life support, the head of Iran Auto Parts Makers Association says

Iranian automakers will miss output goals they had set for the current fiscal year (started March 20), amid the coronavirus pandemic and US sanctions, a member of Tehran’s Chamber of Commerce says.

Speaking to ISNA, Mohammad Reza Najafimanesh, who also heads Iran Auto Parts Makers Association, said the country’s auto sector will only survive if the government extends help.

According to Najafimanesh, major Iranian carmakers, Iran Khodro (IKCO) and SAIPA were slated to pay off 110 trillion rials ($687.5 million) as a part of their debts to part makers last year. However, they have only cleared 38.5 trillion rials ($240.6 million) so far.

Local news outlets have mentioned contradictory figures as car manufacturing companies’ unpaid debt owed to part makers.

After the US reimposed harsh sanctions against Iran in the summer of 2018, almost all foreign partners of Iranian carmakers pulled out of the country after US sanctions targeted Iran’s automotive industries.