Imported Car

Iran is a huge market and everyone is on the starting block waiting for sanctions to be lifted. As soon as that happens, they'll be in," said a source familiar with the Iranian car market. Sources in Aras say some vehicles are shipped from the United Arab Emirates to Bandar Abbas or Bandar Lengeh - ports in southern Iran - and transported by truck more than 1,200 miles across the country to Aras.
Others are imported from Iraqi Kurdistan and Georgia, said another Aras auto trader.
There is little doubt about the potential prize on offer. Production by Iran's domestic car industry, unusually developed for the Middle East, peaked at 1.6 million cars in 2011, the year crippling new sanctions were introduced.


Rich in natural resources and with a population of more than 75 million people, there is no lack of demand either.
Imported cars are taxed heavily in Iran, more than doubling their price to protect its domestic industry, but international brands which are exported to Iran in parts and assembled there are subject to much lighter taxes.
That is the business model of French manufacturers Renault and Peugeot. Both have been active in Iran in recent years, contributing to the production of more than half a million cars in 2011, around a third of Iran's total output that year.

Ever tougher sanctions imposed by the United States and European Union in 2012 have forced them to withdraw from the lucrative partnerships.

But they are hoping for a quick resumption of activities following the initial nuclear deal, which offers a six month suspension on trade sanctions on selected goods including auto parts in return for a curb on key parts of Tehran's nuclear program to allay Western fears it has military aims.
There is little clarity yet on how and when the deal will be implemented but analysts says Iran has the potential to be a profitable and fast-growing auto market exceeding 2 million vehicles annually in the event of a sustained diplomatic thaw.
Even in the best case, that will be some time in the making, but Aras sales manager Mohammad hopes the ban by Iranian authorities on importing U.S. cars to the general market will change much sooner.


Power is not a means, it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship. ---George Orwell

 

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