posted at 01:00
Author Name: Cyril Julien
Foreign automakers find Iranian market has gone local
Iran's auto industry has been a major casualty of penalties imposed over the Islamic republic's nuclear programme, with production plummeting and workers laid off because of the ensuing economic slowdown. Under new joint deals, the industry ministry wants 40 percent of production done in Iran to begin with, rising to 85 percent after five years. "We expect our former partners back in Iran but on the terms that we offer," he said, with particularly tough words for Peugeot-Citroen, noting that "They quit Iran" when the situation deteriorated, adding that they will have "To pay the price for such acts". Iran Khodro now wants a 50-50 joint venture rather than the previous 51-49 ratio in the visitor's favour, encompassing production, sales, technology transfer and access to Peugeot-Citroen's foreign network. "We know what Iran Khodro's interests are and we will go to the company that best protects those interests," said Yekezareh. In early October, Iran Khodro unveiled two new models in collaboration with Renault at a plant in the northern city of Tabriz - a Captur urban crossover vehicle and the Clio 4. Eventual production of those vehicles could raise Iran Khodro's market share to 60 percent, but for a major boost to the auto sector a full and final nuclear deal is necessary. The Tehran government's granting of an exclusivity deal on urban crossovers and city compact models to Iran Khodro and Saipa, the country's second-biggest manufacturer, raises questions about anti-competitive practices.

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