The domestic auto industry faces numerous challenges, the most debilitating of which is protracted disagreements between the government and the Majlis (parliament) over key policy decisions.
Their contradictory stances continue to afflict the sale of cars in the Iran Mercantile Exchange, the import of new and used cars, as well as the difference between the factory and market prices.
Another disagreement pertains to the government’s insistence that automakers must produce Euro 5 vehicles while only Euro 4 gasoline is distributed in the country, Donyaye Khodro reported.
Amirhossein Kakaei, an auto industry expert, said, “We’re not producing Euro 5 gasoline and even Euro 4 gasoline is not widely distributed in the country. But the government has mandated carmakers to produce Euro 5 cars and pursues the production of Euro 4 gasoline [through the National Iranian Oil Refining and Distribution Company]. What happens to all the money that has been spent on producing a Euro 5 car?”