TEHRAN (Iran News) According to IRICA, the imports hiked since foreign currency was allocated for them.

It added that 25,448 new passenger cars valued at over $ 525.04 million were cleared and imported to Iran from March 20 to October 31.

In the same period last year, 2,999 new passenger cars worth over 60.4 million were imported, the report said.

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Speaking on a TV program, Seyed Reza Fatemi Amin said that the government will not extend the ban on imports of cars and when the deadline of the ban ends in June, the government will not extend it.

He went on to say that decision to slap ban on car imports was aimed at managing the forex consumption in the country and it was not aimed at improving the quality of cars. He said the demand for cars in the country is over 1.5m while its supply is around one million and therefore demand has exceeded supply and if the domestic carmakers fail to fill this gap, the country will need imports and government will not extend ban. He added that next year the country does not face the forex restrictions like in 2019 and this year the forex balance is in good position and non-oil exports exceed $47b and for this reason there will be no force for extending ban on car imports.

Fatemi Amin went on to say that the ministry has set a goal for improving the auto industry in the country and carmakers have to improve quality of their products. He reiterated that ministry has set production of 1.5 cars for next year to meet the market demands. He said that production of three old models of cars will be stopped and three new models of cars will roll on the streets.

He admitted existence of mafia in the field of cars and their interests do not let this industry improve. He said existing weaknesses and defects of auto industry can be resolved and automakers should do their best.

Fatemi Amin also said that inflation is the long term malady of Iran’s economy and the country has been struggling with it for years. He noted that liquidity, production and foreign prices (forex and tariffs) are the other important factors in inflation and these factors account for 80% of inflation issues.

He admitted the country lags in production and its development and most platforms of production lines are old.

He reiterated that the government is determined to bring back the country’s production to the level of 2018 and 2019 with 9% economic growth next year. He emphasized that the country has enough infrastructure to rich 8% economic growth.

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