Iran seeks foreign partnerships to boost auto industry

Iran’s president calls for foreign partnerships to boost the country’s car industry and says the sector must be privatized to improve its competitiveness.

President Hassan Rouhani tells a car industry conference in a nationally broadcast speech that partnerships with international carmakers offer a quick way to improve the industry’s technology and safety.

“There is a shortcut … We have to start partnerships with prominent world carmakers. We will reach to the optimum point in technology, protecting the environment, saving energy and safety,” Rouhani says.

He says partnerships with foreign carmakers will serve the best interests of all sides, and increasing the competitiveness of the local market can only help strengthen the industry.

“The government will never be a good manager in industry, including the car industry. The sector should be completely privatized and competitive,” he says. “The partnership will drive us ahead.”

But he also warned that plan would mean removing government protections of the domestic car market such as prohibitions or heavy tariffs on imported vehicles. Rouhani said the days of the state-sponsored auto monopoly must end.

“To close the doors and at the same time impose the products of one or two car factories on the people, while saying these are your only choices whether you like it or not, is not an acceptable logic,” he says.

— AP