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Iranian Auto Industry Moves Ahead Despite U.S. Sanctions

Major Iranian car manufacturers have seen sales growth over the past months despite U.S. sanctions, which is considered by local media a “positive” indicator reflecting an improved production situation and swelling producers’ coffers.

TEHRAN, Oct. 24 (Xinhua) — Major Iranian car manufacturers have seen sales growth over the past months despite U.S. sanctions.

Iran Khodro (IKCO), Saipa Automotive Group and Pars Khodro, three Iranian major automakers, have sold about 536,000 units of various products during the first half of the current Iranian year, which started on March 20, Iranian Donya-e-Eqtesad daily recently reported.

According to the report, the sales of these car manufacturers increased by about 26 percent compared to the same period in the previous year.

The growth is a “positive” indicator since it reflects an improved production situation and it swells producers’ coffers, said the daily.

To overcome the repercussions of the U.S. sanctions, Iranian automakers managed to launch production lines and step into the markets of other countries, including Venezuela which has experienced good relations with Iran over the past decades.

According to IKCO, during a recent exhibition in the Venezuelan capital Caracas, local consumers intended to buy a total of 30,200 Iranian auto products. The exhibition held last month gathered over 150 Iranian companies, including those in the auto sector, to showcase their businesses and technology.

IKCO also announced readiness to meet the maximum demands of the Venezuelan side, including the appropriate after-sales services and training personnel.

Iranian Minister of Industry, Mines and Trade Reza Fatemi Amin said that the trend in the auto industry is growing in different sectors, and the products of parts makers and knowledge-based companies are also improving.

“Automobile companies have started negotiations with foreign automakers, and we are moving forward with our plans regardless of sanctions,” the minister was quoted by Donya-e-Eqtesad as saying on Aug. 23.

Some new products including economy cars in the country’s auto industry will enter the market soon, he added.

Last week, IKCO unveiled a new model TF21, which is equipped with a 16-valve 110-horsepower TU5P engine. According to its CEO Mehdi Khatibi, the hatchback will be available in 5-speed manual and 6-speed automatic transmissions.

The brand plans to manufacture 100,000 units of the TF21 in the first year of production starting September 2023, replacing its previous products of Samand and Peugeot 405 models, he noted.

Also, Saipa Automotive Group unveiled the Shahin Connect car model, which is equipped with the latest automotive technologies, during the Future Cars 2 event held in Tehran on Oct. 19, according to the Iranian English daily Financial Tribune.

In August, Saipa also unveiled the Saina S hatchback electric vehicle at the Automobile Industry Transformation Exhibition held in Tehran.

This originally appeared on Xinhua News.