A deputy industry minister has been quoted by the media as saying that the Chinese car manufacturers will have to leave Iran if they fail to increase the share of local content.
PressTV quotes Mohsen Salehi-Niya as saying:
“The Chinese should speed up their activities to increase the share of local content in their car production projects in Iran.
“Otherwise, they will be crossed out from the Iranian auto market in the next [calendar] year.”
Shahram Azadi, an economist and a university professor in Tehran, said:
“Some Chinese car producers whose products are low quality will eventually have to bid farewell to the Iranian market
“The screw will grow even tighter on Chinese producers if European manufacturers manage to provide products to the Iranian market that will be cheaper but would have a better quality.”
Currently eight Chinese automakers are supplying or assembling 27 models of cars to Iran.