Iran produced 1 million cars in 8 months

TEHRAN, Dec. 10 (MNA)— In a new sign of circumventing the Western sanctions, Iran’s domestic car factories have produced more than one million automobiles in the last eight months, ended on November 20. According to the report, the Islamic Republic has manufactured 1 million and 92 thousands cars in the recent eight months, which shows around 5 percent year-to-year growth in comparison to the corresponding span of last year. In the past 10 years Iran has been emerging as a major car producer in the world. Iran’s car sector has been expanding in recent years, owing in large part to the aggressive growth strategy of Iran Khodro Company (IKCO), which itself experienced sales growth of 18.0% in 2010, with plans to build 850,000 vehicles in 2011. IKCO has circumvented sanctions by producing more parts domestically and the company plans to increase exports. Meanwhile, Business Monitor International in its recent report entitled “Iran Autos Report Q4 2011” had said Iran’s auto sector continues to narrowly avoid direct impact from international sanctions. BMI had expected stable vehicle production and strong sales over the next four years in Iran. Following the 7.5% y-o-y rise in the sales of completely built units (CBU) in 2010, the industry is expected to post another 8% increase this year, BMI said.