Iran News ...


5/12/05

BMW to focus on Iran as a primary regional market

Tehran, May 12, IRNA-German automobile manufacturing giant BMW said Wednesday that it forecasts sales to increase sales to over 13,000 units in the Middle East in 2005 and has picked Iran as one its primary regional markets in the region.

The Internet site Iran economist.com quoted Bolumberg News as saying that the company's Middle East sales volume has increased four fold since 1994.

It quoted Chairman of BMW Helmout Planck as saying "we have very right prospects in selling our products in Iran, Iraq and Afghanistan and have decided to increase our exposure in these countries more than before."

The company has also announced that the revenues dropped in the first quarter of 2005 by 11 percent primary due to significant hike in oil prices and rise in the Euro/Dollar exchange rate.

Car import tariff were fixed at 130 percent in the last Iranian calendar year (Ended March 20) and have now been lowered to 100 percent. Cost of registration and price difference of imported cars are extra.

Based on an approval by the government, only those cars would be imported that are no more than a year old. In order to import cars manufactured after the afore-mentioned period, there has to be "a new approval by the cabinet."

The imported cars are required to abide by all the other imports requirements including environmental guidelines and international standards.

If a country's aims to have unfair trade practices - dumping activities- to incur lower tariff rate, the related organs will introduce steps to mitigate the base price of the domestic car.

In July, after orders for import of six foreign-made automobiles were placed, the import of cars resumed after a 10-year hiatus.

The Commerce Ministry initially proposed 130 percent customs fees on the imports of cars to carry out the two-pronged policy of support for domestically-manufactured vehicles and to facilitate the imports of cars into the country.

The policy was ratified by the cabinet and announced by the Customs Administration.

There is no difference on provisions to imports cars between individuals and companies, but, all the import orders were placed by the representative of the large and reputable foreign car manufacturing companies.

The government had referred to an article in the Third Five-Year Development Plan (March 2000-2005) which stipulated for all on-tariff barriers on car imports to be removed.

Due to various reasons the policies implemented were not successful, but, last year with the gradual imports of cars it was expected that the government forecasts on rising the targeted revenues would be realized.

... Payvand News - 5/12/05 ... --



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