Iran‘s home-grown auto market

by Gareth Smith April 1, 2007

written by Gareth Smith April 1, 2007

It’s an ill wind that blows someone some good. Tehran’s infamous traffic congestion may clog its roads and the lungs of its 12 million inhabitants, but it means big business forIran’s car makers. Total production of new vehicles reached nearly 1 million for the Iranian year ending March 20, according to Ali RezaTahmasbi, the minister of industries and mines, makingIran’s output higher than Australia and three times that ofIndonesia. The sector accounts for about 4% of GDP and 500,000 jobs, giving it a pressing importance for Iran’s rulers, while facing an unemployment rate officially at 11% and the prospect of further international sanctions over the country’s controversial nuclear and missile programs. The strength of Iran’s car industry results not from a vibrant competitiveness geared to a tough world market, but rather from a mixture of high import tariffs, state ownership and petrol subsidized to the knock-down pump price of around

2007 automobiles iran

Gareth Smith

Gareth Smith was a distinguished journalist who reported from the Middle East for over two decades. He served as the Financial Times correspondent in Tehran, where he was the chief Iran correspondent from 2003, following his earlier role as Lebanon correspondent. Throughout his career, Smith covered Middle Eastern affairs for leading media outlets, including The Financial Times, The Guardian, and the BBC. He also contributed as an editor to Executive magazine. His work as a freelance journalist in the 1990s, focusing on the politics of Iran and Iraq, paved the way for his appointment at the FT. In 2009, he relocated to the west coast of Ireland, where he balanced freelance journalism with his passion for nature and the land.

Iran‘s home-grown auto market

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