Skip to main content

How Iran’s auto industry became the new domestic political football

Iranian hard-liners are targeting automotive sector policies in their latest attack on the administration of President Hassan Rouhani.
Deputy of France's Peugeot Citroen (PSA) Jean-Christophe Quemard,(R) signs documents with CEO of industrial group Iran Khodro, Hachem Yekehzare (L), as Iran's Industry and Commerce Minister Mohammad Reza Nematzadeh (2R) watches on in Tehran on June 21, 2016.
PSA is the first Western carmaker to announce a return to Iran since many economic sanctions were lifted in January when a landmark nuclear deal with world powers took effect.
 / AFP / ATTA KENARE        (Photo credit should read ATTA KENARE/AFP/Getty I

TEHRAN, Iran — Iranian hard-liners have launched a new attack on the administration of President Hassan Rouhani, this time focusing on the country’s automotive industry. At an Oct. 25 parliamentary hearing, the Industries and Mines Committee grilled Industry, Mines and Trade Minister Mohammad Reza Nematzadeh over a deal he made last month with the French automaker Renault. Nematzadeh also came under fire over a controversial decision that critics say led to the import of 400 BMW, Toyota, Volvo and Honda vehicles manufactured in the United States, in contravention of guidelines barring the import of American-made cars.

Citing member of parliament Mohsen Kouhkan, the Young Journalists Club — an affiliate of conservative-controlled Islamic Republic of Iran Broadcasting — reported that the responses by Nematzadeh and the CEOs of two leading carmakers, Iran Khodro Company (IKCO) and SAIPA — who appeared with Nematzadeh — will now be reviewed by the parliament’s presiding board.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.