EghtesadOnline: During the first four months of the current fiscal which started on March 21, Iran exported cars, commercial vehicles, tractors and auto parts with the total value of $40,277,057, indicating a 33% year-on-year increase.
According to data released by Islamic Republic of Iran Customs Administration, Iranian parts makers are leading the way, selling goods overseas with the total value of $27,762,854, accounting for 68.93% of Iran’s automotive exports.
Parts are followed by tractors with $7,831,132 in takings and a 19.44% share and cars with $4,419,190 (10.97%). Trucks and pickups had a meager share of 0.66% together with the total value of goods exported standing at $263,881.
The country’s main automotive export target was Iraq with 67% of the Iran-made products sold in the neighboring country with the total value of $26,921,829, according to Financial Tribune.
Following Iraq is Iran’s eastern neighbor Afghanistan with $4,767,786 and a 12% share, Italy $1,853,574 (5%), France $1,260,276 (3%), Azerbaijan $1,140,601 (3%) and Syria $664,270 (2%).
During the four-month period, the main target market of Iran-made auto parts, as expected was Iraq, with the value of products exported to the country reaching $20 million, accounting for 72% of the parts Iranian firms sold outside the country in terms of value.
Iraq is also the largest foreign market for Iranian cars, with the total value of the cars sold in the market reaching $3,649,975, accounting for 83% of units exported.
In recent years Iranian automotive firms have secured a relatively strong foothold in Iraq, establishing an extensive sales network and offering their latest products and services.
However, just like many other firms active in Iraq’s growing market, Iranian companies’ revenues from the war-torn country plummeted as terrorist groups have wreaked havoc on the country. However, with security on the rebound in Iraq, Iranian makers are poised to further expand their presence in the country.
Compared to the same period of last year, Iran’s automotive exports to Iraq saw a 35.05% hike.
Iranian authorities have worked hard in recent years to strengthen Tehran’s trade ties with Baku. As part of consistent endeavors, the country’s largest automotive company Iran Khodro has established a production line in the northern neighbor.
During a state visit to Baku, President Hassan Rouhani and his Azeri counterpart, Ilham Aliyev, inaugurated the IKCO-Azermash OJSC joint venture on March 29. Later on July 30 cars produced through the JV went on sale in Azerbaijan under the brand name Khazar.
With an initial annual production capacity of 10,000 units, the Khazar Car Factory plans to increase output to 15,000 units.
In addition to IKCO, SAIPA has a long-standing presence in the country. However, since the Iran-backed production lines were launched in Azerbaijan, the carmakers are decreasing their car exports to the country.
During the four-month period, the total value of Iran’s automotive exports to the country amounted to $1,140,601. According to IRICA statistics, which indicate a slight 3.2% decline, $842,833 (73.89%) of the goods were in the form of auto parts.
The report further states that Azerbaijan is the fifth major market for Iran-made automotive products with a 2.83% share of the sector’s exports.
One of the other major target markets of Iranian automotive products is Afghanistan. The total value of the goods exported to the country stands at $4,767,786 indicating an 80.35% year-on-year increase. Tractors constitute the majority of the exports.