TODAY.AZ / World news

Iran mulling car manufacturing with Fiat

30 November 2015 [13:50] - TODAY.AZ

/By AzerNews/

By Sara Rajabova

Following improvement in relations between the foreign countries, particularly the European countries, the automobile industry stands as one of the most promising economic sectors to bring big profits to Iran after the lifting of sanctions.

An Iranian car manufacturer is reportedly in talks with Italian automaker Fiat SpA to produce cars in Iran which is billed as the Middle East’s biggest auto market.

Mohammad Reza Nematzadeh, Iran’s industry, mine and trade minister has said Fiat has announced its readiness for cooperation with the Iranian automaker that has been welcomed by Iran, Press TV reported.

Following a nuclear deal between P5+1 and Iran, the race has tightened for access to Iran’s auto market. European automakers, which were forced to leave the Iranian market after international sanctions on the Islamic Republic for its nuclear program, are now attempting to restore their previous shares in Iran’s vast car market.

About 370 Italian traders, including representatives of steel group Danieli, energy company Enel, agricultural machinery maker CNH Industrial, Telecom Italia and several banks, are currently visiting Iran to discuss business opportunities.

Fiat, which controls Chrysler, and its subsidiary heavy-truck maker Fiat Industrial SpA halted sales to Iran in 2012 following similar moves by other carmakers under US pressure to cut ties with Tehran.

Nematzadeh said more than 10 years ago, negotiations were held between Iranian carmakers and Fiat but the company was not allowed to cooperate with Iran after it started partnership with the United States.

He added that Iran was ready to cooperate with Fiat on production of light and commercial vehicles and buses, as well as gas-fueled engines.

Nematzadeh further noted that the Islamic Republic is planning to produce 3 million automobiles in less than 10 years, one-third of which will be exported.

The auto industry is the second largest source of foreign currency and foreign technology for Iran after oil.

Nematzadeh said Iranian automakers are looking for tie-up with reputable companies. “In a number of cases, we are finalizing agreements,” he said.

He also added that in the auto parts manufacturing sector, Iran is also interested in cooperation with Italian companies.

The automobile industry accounts for nearly 10 percent of Iran’s gross domestic product. The latest data shows that Iran ranks 18th on the list of the world’s top auto manufacturers. However, the country’s automotive industry needs modernization after years of sanctions.

Sanctions on Iran hit the automotive industry hard, cutting production by 1 million units from its peak of 1.6 million in 2011 and leading to 100,000 job redundancies.

URL: http://www.today.az/news/regions/145562.html

Print version

Views: 1559

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: