Mitsubishi to Export Hybrid Vehicles to Iran

Mitsubishi Motors of Japan has announced that it will begin selling an electric vehicle model in Iran by this autumn. According to the Japanese news agency 'Niki', Mitsubishi will introduce the plug-in hybrid SUV model 'Outlander' to the Iranian market. The lifting of sanctions against Iran's nuclear program following the implementation of the JCPOA has increased vehicle production and imports in Iran, and the severe pollution in cities has raised demand for electric vehicles. However, despite the reduction in tariffs on electric and hybrid vehicle imports, the impact of sanctions has delayed the import of such vehicles. Plug-in hybrid vehicles are equipped with both conventional and electric motors and can be charged at home. The report adds that Iran will be the first country in the Middle East to use these vehicles. Iran ranks twentieth among the world's largest automakers, with an annual vehicle sales of about one million units, and currently, demand for new vehicles in the Iranian market is on the rise. Mitsubishi's exports to Iran reached approximately 3,200 units in 2016, a 16-fold increase. The company plans to increase its dealerships in Iran from 41 to 50 this year and boost its sales. Iranian customs statistics also indicate that in the first four months of the current fiscal year, which began on March 21, hybrid vehicle imports to Iran increased by 1,855% (more than 18 times) compared to the same period last year. According to Iranian customs data, the value of these vehicles was $79 million and 490 thousand. During this period, the import of automotive parts to Iran doubled, reaching $196 million and 164 thousand. Iran has also increased vehicle production. Mohammad Reza Nematzadeh, the Minister of Industry, Mine and Trade, announced about two weeks ago that 420,000 vehicles were produced in Iran in the first four months of this year, reflecting a 20% increase compared to last year. According to him, the target for vehicle production has been set at 1.6 million by the end of the year. Last year, 1.35 million vehicles were produced in Iran, and this figure is expected to reach 3 million vehicles annually within the next five years. The Financial Times has also examined the impact of the electric vehicle market on the oil market. According to this report, the UK and France have announced that the sale of gasoline and diesel vehicles will be banned in these countries by 2040. This raises the question of whether electric vehicles will reduce oil demand and, if so, when this will occur. The CEO of Shell states that peak oil demand will occur at the latest by the end of the 2020s under pessimistic conditions. However, this requires stricter policies regarding climate change and accelerated innovations in battery technology than previously anticipated. Many in the oil industry believe this transition will take longer. ExxonMobil has predicted that oil demand will continue to grow until the 2040s, although this growth will be slow. According to the International Energy Agency, about 26% of oil demand in 2015 was related to passenger cars, which was more than the total share of the aviation, shipping, and petrochemical sectors.