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According to the problems that automakers face in supplying their required components, their goal to reach an annual production of 500,000 units by 2001, failed; because of inability to increase the capacity of production, shortage of skilled labour and more emphasis to improve the quality. (The problems of auto industry development in Iran will be discussed further in the next chapter) Therefore, the target was postponed until 2003.

Although the government of Iran has passed laws and regulations such as high import tariffs, taxation and low or no financial support for the companies which import the component, to support the domestic production of spare parts, there is a large demand for foreign parts due to their levels of quality and stability of domestic component productions. (Atieh Bahar Consulting, 2003)

Growth and development problems in Iranian auto industry

Domestic and export market

In terms of quality, domestic automakers and the Ministry of Industries and Mines are trying to adopt policies that will raise the standards of Iranian production to be able to compete in the international export market. However the Iranian auto makers can not continue with poor quality and over-pricing even in domestic market for long time as Iran will join the world trade organization in near future and the potential market in Iran will attract multinational auto makers with higher quality and more competitive prices. Apart from the characteristics of the market which we mentioned in previous chapter, the anticipations of more growth beside the advantages of a young population, a great amount of resources for raw materials and low wages caused multinationals thinking of entering the market not just by importing but also to establish their own platform.

Looking at the SMMT statistics for the number of cars imported in Middle-East shows Iran is standing on the first place by importing 213,652 passenger car and 16,000 commercial vehicles, despite of strict regulations of importing cars. (Table 8)

Apart from Iran, Middle-East market is known as one of the wealthiest regions. Statistics show that among different products, automobile market has got the highest rate of growth of 149% from 1995 to 2002 and it is expected to have 50% more growth to 2012. (United Nation Industrial Development Organization, 2003)  According to the expected potential market in the region, if Iranian firms improve themselves in terms of quality, reliability and competitive price, they should be able to play a vital role in Middle-East region, as there is no other car producer in the region apart from Turkey.

Role of the State

In the countries, where the economy is largely controlled by the state, there are always debates on the government and its decisions' influences on the current circumstances of economy and the failure of any industries. The auto makers have been always considered as one of the main industrial part of the countries' economy and so it is in Iran. Therefore looking at the role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。