Baku, Azerbaijan, Apr.7
By Fatih Karimov - Trend:
Carmakers, including Iranian and European ones, should see Chinese carmakers as a threat for them in the Iranian market, said Mohsen Salehinia, the Iranian deputy industry minister.
Salehinia, the Iranian deputy industry minister, said that three years ago the production of Chinese cars in Iran was almost zero, while the situation has changed since then and may also change further in the future, Iran's Mehr news agency reported on April 7.
However, the production of popular vehicles by Iranian carmakers is much higher than the production of Chinese cars, he said, adding that the ministry does not intend to restrict the activity of Chinese carmakers in Iran.
The Iranian carmakers have adopted a strategy to launch joint ventures with renowned international carmakers in the current year, which began on March 21.
Foreign automakers seeking a return to the potentially huge Iranian market with the lifting of international sanctions will find the business environment has changed: former joint venture partners now want to play the game by their own rules.
Total car production was 1.6 million in 2011, but it had halved two years later.
US sanctions on the auto industry in 2013 were the main cause, on top of American and European bans on Iranian bank transactions abroad.
Chinese carmaker Lifan plans to produce 60,000 cars annually in Iran.
Shang You, President of Lifan, said in a meeting with the managing director of Iranian carmaker Kerman Motor, it was decided that 60,000 cars to be assembled by the Iranian company in the current Iranian calendar year.
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