Iran Ramps Up Dual-Fuel Capabilities
April 2008 | Industry NewsGovernment statistics show that Iranian automotive production surpassed 1mn units in 2006-2007. Meanwhile, sales in 2006-2007 are estimated at 1.08mn, a 5.3% y-o-y rise. Sales are slower than in 2005-2006, 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 the costs for automotive manufacturers, as well as freight transportation. The Iranian government is targeting annual output of 1.5mn units by 2009, but BMI believes that this target is unrealistic, given an expected downturn in household consumption. Output is likely to be closer to 1.21mn units in 2009-2010 (still a 20% rise over 2006-2007 levels) and 1.31mn units by 2011-2012. Production will be stimulated by the assembly of new models in Iran.
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