Iranian Sales To Moderate

Production and sales growth in the Iranian automotive sector is set to slow in the years ahead due to constraints on household spending and a moderation in economic activity, according to BMI's latest Iran Automotive Report. Government statistics show that Iranian automotive production surpassed 1mn units in 2006/07, confirming BMI's estimate of 1.03mn units. Meanwhile, sales in 2006/07 are estimated at 1.08mn, a 5.3% y-o-y rise. Sales are slower than in 2005/06, when growth reached 25.7%. The rapid rise in the cost of basic necessities is having a negative impact on household-spending on cars, while higher producer-prices are pushing up

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