Iran unlikely to reach 1 million cars output this year

摘要

Being restricted by the US sanctions, Iranian automotive producers are unlikely to post satisfactory year-end results.Car production slump is affecting domestic steel consumption and undermines the sustainability of the steel business.Iran will fail to reach a car production of 1 million units during the current Persian year (March 21, 2018 – March 20,2019). Numerous difficulties with spare parts imports, lack of efficient regulations regarding currency operations as wellas high debt burden prevent the sector from sustainable performance. “Even before the US sanctions, the automotiveindustry struggled with the provision of needed materials, parts and decrease in operating profits due to currencyfluctuations. Now a lot of problems are still unsolved,” a source told Metal Expert. Moreover, the demand for cars isalso under pressure amid challenging market conditions and lower consumer confidence.