Economy

Iran’s Car Market to Be Dominated by the French Once Again

Iran’s Saipa and France’s Citroen are finalizing a deal that will let the French monopolize the Iranian car market on the contrary to what Rouhani’s government had promised.

Saipa, one of the two leading auto-manufacturers in Iran, is finalizing its cooperation deal with the French corporation, PSA Peugeot Citroen. This will be the second time Iran’s market is being dominated by the French, while President Hassan Rouhani’s administration had promised to prevent foreign car-makers from monopolizing Iran’s market and underlined the need for transfer of technical knowledge in the post-JCPOA era.

According to a report by Fars, as translated by IFP, the Iranian car industry these days is busy negotiating and beginning a new round of cooperation with French car-makers. However, after the implementation of Joint Comprehensive Plan of Action, the nuclear deal between Tehran and world powers, government officials and Iranian auto-manufacturers repeatedly pointed to the huge number of foreign car-makers willing to make investment in Iran.

However, the only thing that has happened so far is the cooperation of Iranian car-maker with its former associate, the French.

During the time of anti-Iran sanctions, French auto-makers played a very effective role in implementing the policies of their country’s government, and showed the worst behaviour towards Iranian car-makers, who had been their partners for 23 years.

After the deal between Iran Khodro Company (IKCO) and France’s Peugeot, which was finalized last year, now it is the time for Saipa to prove its loyalty to the French. Saipa’s contract with Citroen, which is part of the PSA Peugeot Citroen Corporation, will be signed one of these days.

Iranian Deputy Trade Minister Mohsen Salehinia, who is also a member of IKCO’s board, recently announced the finalization of a deal between Saipa and Citroen, based on which Citroen will purchase half of Saipa Kashan Factory’s shares.

Earlier this month, Mahdi Jamali, the CEO of Saipa, had also noted that the contract will be signed within a few weeks.

Citroen is going to easily acquire 50% of the giant factory of Saipa Kashan, which is a brand new and up-to-date plant. Due to a lack of transparency and the secrecy of the contract, it is not clear yet how much money Citroen is going to invest in this cooperation.

IFP: Iranian car-makers are also in talks with several other countries including Germany, Japan, Italy, South Korea, India, Romania, and Russia, among others.

Iran’s automotive industry is the second largest industry of the country, after its oil and gas, accounting for 10% of the country’s Gross Domestic Product (GDP).

The industry is expected to grow significantly following the nuclear deal, whose implementation started on January 16, and has terminated all nuclear-related anti-Iran sanctions.

IFP Editorial Staff

The IFP Editorial Staff is composed of dozens of skilled journalists, news-writers, and analysts whose works are edited and published by experienced editors specialized in Iran News. The editor of each IFP Service is responsible for the report published by the Iran Front Page (IFP) news website, and can be contacted through the ways mentioned in the "IFP Editorial Staff" section.

Recent Posts

IRGC: US Iran’s main enemy, Israel can’t survive without its support

The spokesperson and deputy head of public relations for the Islamic Revolution Guard Corps (IRGC)…

2 hours ago

Iran says increased number of its centrifuges in response to the IAEA resolution

The Atomic Energy Organization and the Iranian Foreign Ministry announced that, in response to the…

2 hours ago

Iranian, Belarusian tourism ministers meet on facilitating tourist movement

Iran's Minister of Cultural Heritage, Tourism, and Handicrafts, Seyed Reza Salehi Amiri, met on Thursday…

5 hours ago

Unscheduled visit by Qatari prime minister to Tehran sparks speculation

Reports emerged by Iranian daily Donya-e Eqtesad suggest that the Qatari Prime Minister and Minister…

20 hours ago

ICC issues arrest warrant for Netanyahu, Gallant for ‘war crimes’ in Gaza

The International Criminal Court (ICC) has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu,…

21 hours ago

Iran to respond to Europe’s “non-technical” move: Foreign Minister

As France, Germany, and the United Kingdom submit an anti-Iran draft resolution to the International…

21 hours ago