Iran carmaker slams lack of government support

11 Oct, 2006

Iran's largest car maker said Tuesday problems with quality and lack of government support were undermining its ambitious plans for a massive increase in exports over the next four years.
Iran Khodro, established in 1962, is seeking to increase its exports to 250,000 cars in 2010 from 6,000 vehicles in the last Iranian calendar year of 1384 (March 2005-2006).
Alireza Mirzai, Iran Khodro's director of exports, said the company's export efforts were focussed on Iran's flagship "national car" the Samand, the successor to the notorious gas-guzzling Paykan whose production has now ceased. But he outlined a litany of factors which he said showed "poor governmental support" for the company's efforts.
"The government has not been yet able to accept the concept of exports," he said.
Mirzai pointed to "a lack of membership in regional or international trade pacts that would ease up customs, targetting unprofitable markets for political reasons, belated payment of exports bonuses and a complicated system of customs and loans for importers."
He said that while Iran Khodro was encouraged to export to Syria as Tehran's major regional ally, Damascus "has relentlessly and unilaterally cut its car imports tariffs."
But he also admitted that "the most important problem is the product's quality, then it comes to punctual delivery of products according to our commitments, which is sometimes problematic."

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