Iran's auto production fell by more than 36 percent over the past three months, ISNA news agency reported today.
The production fell to 241,500 vehicles in the first quarter of the Iranian year (March 21 to June 20). Iran produced more than 1.5 million vehicles in the last calendar year. The decline coincides with the halt of parts deliveries to Iran by French manufacturer Peugeot due to sanctions.
Peugeot is a partner of the main Iranian automaker Iran Khodro (IKCO), which manufactures the 405 and 206 models in Iran, accounting for approximately 40 percent of Iranian automobile production.
The head of the Iranian Association of Automobile Manufacturers, Ahmad Nematbaksh, told ISNA that the drop in production is due to the "lack of money available to the manufacturers" given by the state, which caused a "cash crisis."
The business daily Donaye Eghtesad said the decline in production is "unprecedented in the past 20 years."
Photo Credit: Iran's leading automaker IKCO unveils the new "Dena" in Tehran last year. (AFP Photo/Atta Kenare)