Iran's Two-Month Auto Parts Import Bill: $468m

EghtesadOnline: Iran’s auto parts import bill for the first two months of the current fiscal which started on March 21 has come in with the total value of the goods standing at $468.7 million.

News ID: ۷۸۳۰۳۲

23 June 2018

According to statistics released by Islamic Republic of Iran Customs Administration, in terms of value, auto parts have a 6.9% share of the goods entering Iran, topping Iran’s import bill.

The figures attest to local carmakers’ overdependence on foreign suppliers, leaving them vulnerable to foreign currency rate fluctuations. Furthermore, the published data indicates a 63% year-on-year growth in auto part imports.

Following auto parts are corn feed ($296 million), soybean ($247 million), rice ($183 million) and semi-milled or wholly milled rice ($183 million), as the goods making up the major imports of the country, Financial Tribune reported.

Moreover, auto parts shipments are categorized into three groups depending on the share of locally manufactured parts in the final product: vehicles with under 30% localization, 30-50% and over 50%.

The first group (with less than 30% localization) has the biggest share in Iran’s auto parts import bill, with $332 million and 71% of parts brought into the country, indicating an outstanding 92% jump compared to the first two months of the last fiscal.

The second group (with localization over 50%), with the total value of $72 million accounts for 15.5% of parts entering Iran, has observed a 9.9% YoY increase.

Imports of the parts falling in the third category have observed a 31% year-on-year hike in terms of value, costing $63 million and accounting for 13.5% of the auto parts bill.