Welcome to this episode of the Iranian Market. In this edition, we are going to discuss Iran’s auto industry.

Auto industry is one of the important industries in the global trade and is one of the indices of development. This industry, due to its close relation with more than sixty other industries, is known as the “locomotive" or "engine" of industries.

A number of technologies related to different fields including metals, plastics, chemicals, textile, glass, power, electronics, metallurgy, design, management, economy, etc. are involved in auto industry.

In 2016, about 95 million autos were made and sold globally. China, Japan, and the US have the largest share in producing cars across the world.

The history of auto industry in Iran began with entering the first car from Ford company. This automobile was bought from Belgium in early 20th century. This car was called among the people as “the smoky carriage” because of emitting a lot of black smoke. With the expansion of urbanization, the import of autos to Iran increased in 1920. Most of the imported cars in those days were made in the UK or the US.

In early 1960s an auto manufacturing factory was set up in Iran by the private sector and cooperation of some foreign companies. Auto industry in Iran began its activity first by assembling auto parts.

Before the victory of Islamic Revolution in Iran, only 9 auto companies were active in the country, namely, Iran Khodro, Pars Khodro, Saipa, Zamiad, Iran Kaveh industrial company, Morattab Khodro, Leyland Khodro (Shahab Khodro), Khavar industrial group and Bahman industrial group (Mazda automaker).

These companies produced vehicle, truck, minibus, bus, and motorcycle.

They worked under the license of Japanese, German and Italian automakers.

After the victory of Islamic Revolution, Iran’s auto industry developed dramatically. It was in this era that Iran’s auto industry was nationalized. 

After the victory of Islamic Revolution, Iran began designing and producing cars. 

This, while by the start of the US-imposed war on Iran through its minion Saddam, this industry stagnated. However, after the war and by adopting appropriate measures like reaching self-sufficiency in making autos, considering quality, reducing pollutants and reasonable price, this industry flourished again. 

Right now, more than 25 auto making companies as well as 1200 auto parts manufacturing units are active in Iran.

Today, the Islamic Republic of Iran proudly exports autos to different Asian, African and Latin American countries.

Common export markets for Iranian automobiles include Algeria, Azerbaijan, Cameroon, Ghana, Egypt, Iraq, Pakistan, Senegal, Syria, Sudan, Cuba and Venezuela. 

In spite of being under severe pressure by illegal US sanctions after the victory of Islamic Revolution, the Islamic Republic has gained great successes in producing cars especially in recent years.

Iranian carmakers use Nanoscience and Nanotechnology to increase customer satisfaction and safety by providing such comforts as anti-stain dashboards, hydrophobic glass planes and anti-scratch paint. 

In 2009, researchers at Isfahan University of Technology developed a strong but light Nano-steel as resistant to corrosion as stainless steel for use in road vehicles.

Iran’s car producing companies are also planning to launch the production of hybrid and electric cars in the near future.

AE/ME