Iran’s government finally cleared a law allowing imports of finished cars more than four years after the country imposed a ban on such imports to protect local automakers and reduce hard currency spending.
The official IRNA news agency said in a report on Saturday that Iran’s administrative government had issued a decree earlier in the day setting the conditions and regulations for car imports into the country.
The report says that under the new law, which was approved in Cabinet on August 17, Iranian importers will be able to import finished cars worth less than 20,000 euros, with a focus on cars from worth less than 10,000 euros, to sell them to customers in Iran Mercantile Exchange.
The total annual car imports allowed under the new law should not exceed 1 billion euros, he added.
The report said the import of unfinished cars for use in Iran’s commercial fleet will be allowed under Iran’s foreign direct investment rules, while imports of cars in Iran’s free trade zones, where regulations are more lax compared to the mainland, will be exclusively limited to hybrid or off-road vehicles. electric car.
Iran imposed a ban on importing cars in 2018 after the country’s oil export revenue was strained due to US sanctions.
The ban was also intended to help local automakers increase sales and better deal with the effects of the sanctions on their supply chains.
Iran’s Ministry of Industry expects around 100,000 cars to be imported into the country under the law in the next 12 months.
However, the ministry said on Saturday it would consider strict standards for car imports into Iran, including the need to establish a sufficient number of dealerships and a steady supply of parts to the market.