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)
