Iran, Brazil Eye Enhanced Automotive Relations

EghtesadOnline: Iranian and Brazilian officials are to engage in dialogue within the next few months to discuss expansion of bilateral ties in the auto industry.

News ID: ۷۸۳۵۸۸

07 August 2018

Details of a meeting between Brazilian Ambassador in Tehran Rodrigo de Azeredo Santos with Iranian officials last Wednesday have recently been released, with the talks pointing to the South American nation’s commitment to developing bilateral ties.

Deputy industries minister and head of Iran’s Industrial Development and Renovation Organization, Mansour Moazemi, held a meeting with Brazil’s ambassador and auto industry delegates on behalf of Iranian automotive firms, reported IDRO News.

IDRO’s head of foreign affairs Ali Araqchi disclosed the details of the meeting, saying Brazil is ready to collaborate with Iran on joint investments, financing projects and exporting goods to Iran, according to Financial Tribune.

By exporting goods, the Brazilian officials mean bringing commercial vehicles to Iran in the form of complete knock-down (CKD) kits.

Araqchi added, “Brazil’s auto industry representatives pointed to the South American country’s huge capacity for the production of commercial vehicles and their firm decision to enter Iran’s market.”

Sizable Investment

According to Araqchi, the Brazilian delegates had pointed to the production volumes of the Swedish luxury producer Volvo and the Italian industrial manufacturing company IVECO in Brazil, saying the factories of the aforementioned companies in the country produce more vehicles than those located in European countries.

IDRO reports that Brazil has for the initial stages allocated €1.2 billion to financing the collaborations.

According to the news website Just-Auto, the South American country’s automotive firms have 65 production lines in 42 countries with an annual output of five million units.

The sector has created 1.3 million direct and indirect jobs and represents 22% of Brazil’s industrial GDP and 4% of the country’s GDP.