Iran’s Car Production Drops Seven Percent Amid Energy Challenges

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Iran’s car production fell seven percent in the first nine months of this year. The decline occurred mainly because of energy supply problems. The Industrial Development and Renovation Organization of Iran (IDRO) said the drop was not very large. Farshad Moghimi, head of IDRO, said energy restrictions disrupted manufacturing schedules. He explained that when energy limits are applied, factories cannot make up for lost output later. Officials are working to bring vehicle output back close to last year’s level by the end of the year.

The decrease affected the country’s major automakers, including Iran Khodro, SAIPA, and Pars Khodro. Together, these companies produced nearly 900,000 passenger vehicles last year. Despite the reduction, Moghimi said the overall impact on the industry remains manageable. Experts note that energy problems continue to challenge Iran’s industrial sector. Automotive output slowed particularly during periods of high electricity and gas demand. Factories had to reduce operations temporarily, directly lowering the number of cars manufactured.

Government officials are taking steps to prevent further losses. They aim to improve energy distribution and ensure production schedules continue without interruption. Transitioning to more stable power sources is part of the plan. Industry leaders remain cautiously optimistic. They believe output can recover if energy supply stabilizes. Some automakers have already adjusted schedules to match available electricity and fuel. 

Analysts say these efforts may allow the sector to reach previous output levels soon. In summary, car production in Iran decreased this year due to energy challenges. Officials are actively working to restore vehicle output. With proper management, production may return to last year’s levels. Maintaining strong output is crucial for Iran’s economy, and stabilizing it will help secure jobs and growth.

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