Automotive Industry in Iran - Historical Development

Historical Development

See also: Economy of Iran and Automotive industry

In the 60's, lacking the technical know-how and unable to produce its own automobiles, Iran invited western firms in order to start a domestic automobile industry. Since then, Iran has developed its domestic industry where it can design and assemble cars on its own, including a new car factory in Kashan. The average operating margin of the five major Iranian automakers dropped by 1% from 13% to 12% in 2011. The 6 development phases of Iran’s automotive industry have been:

1. Assembly (with Western assistance) 1969–1989
2. Spare Parts Industry Development 1990 – Present
3. Auto Design 1975 – Present
4. Mass Production 1975 – Present
5. Establishing Export Bases 2006 – Present
6. Mass Auto Export 2008 – Present
7. Development and Use of Domestic Platforms 2012 – 2016 onward

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