Has Car Production Increased Due to the JCPOA?

According to the latest statistics, car production in the first eight months of 2016 has grown by more than 35% compared to the same period in 2015. Some experts attribute the increase in car production in Iran to the positive impacts of the JCPOA on the Iranian economy. Based on the latest statistics from the Ministry of Industry, Mine and Trade, the amount of car production by the end of November has reached 820,463 vehicles, reflecting a 35.9% growth. The production of passenger cars during this period was 759,871 units, pickups 52,129 units, buses 616 units, and trucks, truck tractors, and semi-trailers 7,353 units. The production of various vehicles increased from 55,693 units in November of last year to 129,031 units in November of this year. During this period, the production of passenger cars has grown by 138%, rising from 50,914 units in November of last year to 121,272 units this November. The production of pickups also increased by 76%, from 3,958 units in November 2015 to 6,972 units this November. However, the production of minibuses and mid-buses has dropped by 46%, from 62 units last November to 33 units this November. In contrast, the production of buses has increased by 22%, rising from 79 units in November 2015 to 97 units this November. The production of trucks, truck tractors, and semi-trailers has decreased by 3%, from 680 units last November to 657 units this November. Arash Mohabinejad, the secretary of the Association of Homogeneous Parts Industries, stated that the JCPOA has had many positive effects on the automotive and parts industry, resulting in a 35% increase in car production. He noted that as of now, nine months into the current year, the positive effects of the JCPOA on the domestic automotive and parts industry are gradually becoming evident. He mentioned that by December of this year, car production in the country has grown by about 35% compared to the same period last year, and with the current situation, they hope that the car production plan for this year will be realized. The Ministry of Industry, Mine and Trade set a target of producing about 1,400,000 vehicles for the year 2016, and with the production growth so far, this goal is likely to be achieved. The current state of the automotive and parts industry is improving compared to previous years, especially under sanctions, and it can be said that the automotive industry is returning to its main path to achieve the goals set out in the 2025 Vision Document for Iran. According to the latest statistics, the production of three companies, Saipa, Iran Khodro, and Bahman Group, in November has increased by 171%, 134%, and 84% respectively compared to the same period last year. Iran Khodro, with a 134% increase, produced 60,993 units this November compared to 26,040 units last year. Bahman Group has also managed to increase its production by 84%, reaching 397 units this November, up from 215 units last year. The production of passenger cars in Saipa, as a competitor of Iran Khodro, has also risen by 171%, increasing from 18,771 units in November 2015 to 50,926 units this November. During this period, the production of passenger cars in Kerman Motor has also grown by 44%, rising from 2,754 units in November 2015 to 3,984 units. The production of passenger cars in the Managerial Automotive Company has also increased, with a 51% rise from 3,113 units last November to 4,722 units this November. It seems that the nuclear agreement is gradually showing its effects on the Iranian automotive industry after a year. The market is emerging from recession, and foreign companies are slowly returning to Iran. Currently, three major contracts in the passenger car sector and two contracts in the heavy vehicle sector have been signed with major automotive companies worldwide. Renault has signed a joint cooperation agreement with the Organization for the Development and Renovation of Industries of Iran, Peugeot with Iran Khodro, and Citroën with Saipa. Currently, foreign investment for passenger car production has reached over one billion euros. In the heavy vehicle sector, Mercedes-Benz and Scania have signed contracts and memorandums of understanding with Iranian companies for the production of trucks and buses. In addition to these companies, about ten other companies are currently in negotiations for passenger and heavy vehicle production.