Iranian Tyre Industry
After years of dispute, it looks as though Iran and the USA are coming to terms with each other. The six-month interim deal between Iran and the P5+1 countries, aimed at curbing Iran’s nuclear programme, represents a welcome breakthrough for diplomacy and perhaps hints that Iran is rejoining the world economy once again. The sanctions which have been imposed are being eased a little but with the promise of more relaxation to come if negotiations proceed as hoped. There will be a long and arduous negotiation process but it could lead to a more comprehensive agreement and a gradual welcoming back of Iranian companies to the world economy.
But first, does this matter? How important is Iran in the world economy? Yes, it does matter and Iran is a large and important economy.
The Iranian economy is worth $1,016 billion, far larger than Iraq ($242 billion) and even bigger than Saudi Arabia ($921 billion.) It has a much larger population base than any other country in the Gulf region with 80 million people compared with 32 million in Iraq and 27 million in Saudi Arabia. However, the effects of the sanctions have been showing – growth last year in Iraq was 8.4% and 6.8% in Saudi. In Iran the economy shrank by 2%. Perhaps the new accord is the first sign that Iran is coming out of the cold. And not before time. Iran has a strong and vibrant automotive industry making vehicles and all automotive components. There are nine companies manufacturing tires and several of these are looking to export to the region and perhaps further afield. However, the competition within Iran for the domestic tire market is fierce and the more progressive firms know they must strike up alliances if they are to succeed.
A short report on the Tire Industry from Iran
Hooman Tootounchi, the R&D Manager at the Pars Tire Company, has prepared a short report on the Iranian tire industry in order to demonstrate some of the opportunities in that country. It is available for download and if anyone wants to enquire more about the industry he and his colleagues will be pleased to help. In the first instance please contact Neil Mullineux via the Contact World Tire Report Page and we will be pleased to pass this on to Mr Tootounchi.
A journey of a thousand miles begins with the first step but neither Iran nor the western nations should have any illusions. The present fragile deal is no panacea as yet for Iran’s ailing economy. The most punitive oil and financial sanctions will stay in place, hampering the country’s recovery from its last two years of economic contraction.
: Download Report on the Iranian Tire Industry
: Contact Neil Mullineux at World Tire Report.