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Around 40.9% of GDP in Iran comes from industrial sector and according to Ministry of Industry and Mines the auto manufacturers has been the fastest growth industry with a 27.2% annual rate of growth, nevertheless the share of automobile and component in exports has a fell by 0.9 percent share in country export from 2003 to 2004. (Ministry of Industry and Mines, 2005)The main reasons of export decrease were manufacturers' emphasis on domestic market and attempting to improve the quality of production cars.

Auto industry market in Iran

With the current population of 72 million in Iran, almost one percent of the world's total, the share of the total global car production is a little, over 0.6%, while the market demand is greater than current production levels and there is a big potential demand in domestic market due to; firstly, the low number of automobile per capita in Iran. (Table 4) According to statistics for 2001, there was one automobile available for every 16.8 people in Iran. This clearly shows the capacity of the market for more automobiles and secondly, almost half of the automobiles in Iran are over 20 years old. So, there is a remarkable demand for replacement of the old cars as well as new demand which auto manufacturers need to meet them. Thereupon, the government has set an objective not only to produce more cars to meet the ever-growing demand, but also to produce enough new cars to replace the old ones. (Table 5) (Atieh Bahar Consulting (2003)

Iranian auto industry

'Iranian manufacturers currently produce six different types of vehicle, including passenger cars, 4WD, trucks, buses, minibuses, and pickup trucks.' According to the latest statistics provided by the Ministry of Industries and Mines, there are some 3.8 million vehicles in the country.

The Iranian auto industry started with a CKD assembly industry in 1969 based on the British product, Hillman Hunter, which was named Peykan and assembled by the state owned firm, Iran-Khodro. (The production of Peykan was ceased in 2005) The aim was to develop the ability to mass produce and become an export player through a process consisting of 6 defined phases. -The development objectives are summarized in the Table 7 - but they were able to complete hardly just the first one due to the licensing agreement with foreign companies.

Despite of all progress in the sector the manufacturers can not supply the market demand. As it was mentioned, the current and potential market in Iran is large. In fact, according to Iran-Khodro, more than 450,000 people pre-purchase automobiles every year and wait approximately two years to receive them in 2001. The estimate of the total annual demand for light passenger vehicles in Iran is approximately 600,000 units (Iran Khodro Industrial .

The role of the government

The government has and still is protecting the automotive industry from its more experienced and financially stronger foreign competitors. It is trying to promote export by eliminating export 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。