TEHRAN – Iran Khodro, the Middle East’s biggest car maker, said on Sunday 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 percent 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 U.N. sanctions imposed on the Islamic Republic over its nuclear activities.
He also told a news conference the company was generally ready for privatisation, but that he preferred to be given some time to boost productivity and adapt its finances.
He said Iran Khodro — maker of both cars and trucks — 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.
“Despite the global recession and the bankruptcies of globally well-know companies, Iran Khodro has remarkably broken its previous production records,” Najmuddin said.
Iran Khodro’s market share, which had declined to about 46 percent last year after the phasing out of an old model, increased to 49 percent this … >>>
