The Iranian Automotive Industry

Paper Summary:

The paper explains that the automotive industry in Iran has grown in recent years to the extent that it is considered a serious auto manufacturer in the modern market. This paper details the complex aspects of the growth and development in this industry. The paper highlights how presently the authorities in Iran view the automotive industry as a primary strategic asset in the economy of the country. The paper illustrates, however, that quality, privatization and politics are factors which need to be explored as Iran attempts to become a major player on the international markets.

Contents:
Introduction
History and Overview
Manufacturers and Employment
Production
Markets
Conclusion

From the Paper:

"In summary it can be stated that the growth of the Iranian automotive industry began in earnest in the 1960's with the introduction into the country of foreign car manufacturers. The automotive industry in the county is growing rapidly each year and it has "...become one of Iran's key economic activities, after oil production." (Market overview : Iran) The importance of the industry is also evidenced by the fact that Iran invested an amount of US$ 1 billion in the countries automotive industry between 1998 and 2000. Today, the objective the general objective is to"... produce one million vehicle each year by 2005/2007 in order to promote the national automotive industry, to bring down the age of the national vehicle park and to develop exports" (Market overview : Iran) The Iranian automotive park is estimated at around 4.6 million vehicles, of which almost 40% are more than twenty years old. The car ownership rate is 55 vehicles for 1,000 people in a country with a population of 76 million. (Market overview: Iran)"

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