Iran sets up new plans to attract investment to auto industry

/By AzerNews/

By Sara Rajabova

Iran is looking for the way of attracting more investment to its biggest non-oil sector – auto industry following the softening the international pressure on the country.

Mohammad Reza Razavi, chairman of Iran's Institute for Trade Studies and Research said the Iranian government and parliament are working on new incentives to encourage foreign investment in the country’s automobile industry, Press TV reported.

He noted during a meeting with Japanese ambassador to Tehran Koji Haneda that automakers around the world, EU companies in particular, are seeking to return to Iran to make investment in the country.

Iran’s auto industry is one of the most appealing sectors for foreign investments, should financial sanctions on the Islamic Republic be lifted.

The European car-makers are striving to resume their activities in Iran as soon as all sanctions are removed.

Razavi described Iran’s auto market as a gateway to regional markets and called on Japanese companies to take the opportunity to set up joint ventures with Iranian companies.

He said the Iranian authorities have already been working on new incentives to boost direct foreign investment in the country.

Recently, French companies which were forced to leave Iran’s huge market in 2012 amid Western sanctions have said to be willing to return to the country, once a final nuclear deal is inked.

French giant automaker Peugeot it has been reported will form a joint venture with the country's leading car manufacturer, Iran Khodro in the near future.

The automobile industry accounts for nearly 10 percent of Iran’s gross domestic product. Latest data show that Iran ranks 18th on the list of the world’s top auto manufacturers.