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Car companies in Iran

Iran Khodro car manufacturing plant, near Tehran, Iran

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When hundreds of Iran’s car part manufacturers were invited to a dinner with senior officials this month, they expected to be reassured that the government would be taking action to save the automobile industry after the temporary lifting of international sanctions on the sector.

Instead, a weekend gathering organised by the Iranian Auto Parts Manufacturers Association descended into chaos when 22 officials and vehicle manufacturers on the guest list failed to appear.

“We are not here to tell each other how miserable we are,” delegates yelled. “Where are the officials to listen to our complaints?”

Hundreds of Iran’s 2,000 or so car part producers have gone bankrupt or switched to other areas of manufacturing and thousands of workers have been laid off in the past two years amid crippling sanctions imposed over the country’s nuclear programme.


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The sanctions caused a sharp drop in imports and led PSA Peugeot Citroën and Renault, the French car producers
on which Iran’s car industry was dependent, to all but abandon the Iranian market.