In comments on Sunday, Iranian Defense Minister Brigadier General Amir Hatami said his ministry has signed a series of contracts with the Iranian carmakers, worth around 15 trillion rials, to produce critical auto parts.
The Defense Ministry had already voiced readiness to assist the local carmakers in manufacturing the components whose production has been hampered after the withdrawal of foreign contractors from Iran, he added.
The minister also noted that the high-quality products the Defense Ministry is going to manufacture are required to complete the assembled cars, including engine control units.
General Hatami finally dismissed plans for manufacturing civil cars, saying the Defense Ministry has focused on military vehicles and is going to unveil a new one soon.
“The Defense Ministry with its committed and skilled workforce as well as its advanced industrial platforms is ready to address the needs of the domestic car part manufacturers,” Hatami had said.
While Iranian automakers Iran Khodro and Saipa have managed to nationalize the production of various models to some extent, there are still parts that need to be imported.
The dependence proved costly after French carmakers Peugeot Citroen and Renault, who enjoyed huge sales in Iran, abruptly left the country following US President Donald Trump’s decision in May last year to abandon the 2015 Iran nuclear deal and reimpose economic sanctions against Tehran.