Iran General NewsIran car output plunges 42% amid sanctions

Iran car output plunges 42% amid sanctions

-

AFP: Auto production in sanctions-hit Iran nosedived by more than 42 percent in the past six months, media reports said on Thursday, citing industry ministry figures. TEHRAN (AFP) — Auto production in sanctions-hit Iran nosedived by more than 42 percent in the past six months, media reports said on Thursday, citing industry ministry figures.

Some 459,440 vehicles were produced from March 21 to September 20, according to the figures, while production stood at 792,286 in the same period in 2011, ISNA news agency reported.

The drop accelerated in the month from August 21 to September 20, with the ministry recording a 66-percent fall compared with the same period last year. Iran built more than 1.5 million vehicles last year.

The report did not provide any explanation for the drastic drop.

However, the decline coincides with a strengthening of Western economic sanctions against Tehran, and the halting of parts deliveries by French manufacturer Peugeot because of the punitive measures.

Peugeot is a partner of top automaker Iran Khodro (IKCO), which manufactures the 405 and 206 models and whose output accounts for about 40 percent of Iranian automobile production.

Peugeot announced in February it had stopped shipping to Iran and repatriated most of its staff.

It cited difficulties created by the Western banking embargo against Tehran, which has complicated trade and caused a shortage of foreign currency.

The Iranian Association of Automobile Manufacturers said in July the drop in production is due to the “lack of money available to the manufacturers” given by the state, which caused a “cash crisis.”

Citing executives, business daily Donaye Eghtesad said the decline was “unprecedented for the past 20 years” and could create difficulties for the whole industry, including subcontractors, with plant closures and layoffs, if the government does not come forward with $1 billion in aid.

The sector generates about 500,000 direct and indirect jobs in Iran, according to official estimates.

Latest news

Iran Regime’s Ministry of Culture’s Decision To Eliminate Children’s Intellectual Centers

With the so-called ‘Cultural Revolution’ which took place between 1980 and 1983, the Iranian regime tried to purge the...

Water Shortage Crisis and the Destruction of Iran’s Water Resources

Iran is currently suffering from a number of dangerous natural disasters. One of the most worrying is the drying...

Economic Freedom Under the Rule of the Mullahs in Iran

The Fraser institute published its annual report of the index of economic freedom on September 8, which measured the...

Iran’s Regime Continues Its Internet Restriction Project

This is part of the outlook of a document by the Iranian regime’s Supreme Council of Cyberspace, which has...

Iran’s Human Development Index Dropped Sharply

One of the most common questions asked in primary schools by teachers all over the world is, “wealth or...

Narcotics Iran Regime’s Income Source for Terrorism

Besides Iran’s malign activities, such as its regional interference, and missile and nuclear projects, drug trafficking plays a major...

Must read

Police attack protest in southwest Iran city

Iran Focus: Tehran, Iran, Nov. 05 – Dozens of...

Iran, Russia partnering to launch cyber attacks

Free Beacon: Iran has emerged as a leading cyber threat...

You might also likeRELATED
Recommended to you