x Abu Dhabi, UAETuesday 23 January 2018

Khodro hits record production, but is fearful of imports

IRAN // Iran Khodro said it was breaking its own production record in the 2009/2010 year, but it expressed concern about plans to cut high tariffs on imported vehicles. Like other Iranian car companies, Iran Khodro benefits from significant protection from foreign rivals, but the government is now planning to reduce import duties by 20 percentage points to 70 per cent during the upcoming year. Managing director Javad Najmuddin said such a move would help international companies from countries "which are issuing resolutions against us," in reference to UN sanctions imposed on the Islamic Republic over its nuclear activities. He said Iran Khodro expected to produce 680,000 vehicles during the Iranian year that ends on March 21. This was a new record for the company, but Najmuddin did not give a comparison. Next year, the aim was to reach 730,000 units.