Rouhani calls for privatisation of Iran’s car industry

Iran’s car industry should be completely privatised if it is to become a global competitor, President Hassan Rouhani said earlier this week. The Iranian state currently controls roughly half of the automotive sector which is the country’s second-largest industry in Iran after oil, with 700,000 employees.  Since sanctions were imposed on Iran in 2006, output is estimated to have dropped from 1.5m units a year to less than 700,000m with quality also suffering.
In January, France’s PSA Peugeot Citroën, which has  been operating  in Iran for more than 30 years,  became the first western company to sign a binding contract with an Iranian group following the lifting of those sanction and entered into a joint venture with  Iran Khodro to produce a range of cars, saying it expected to invest €400m over the next five years in developing facilities in the country.

Source: iran-bn