Iranian vehicle production falls sharply

More than 110 component suppliers have shut down and thousands of workers have lost their jobs over the past year

Passenger car output in Iran has fallen sharply in recent times due to international sanctions against the country, reports the Financial Times (FT). Production during the first nine months of the Persian calendar year, which begins in March, has fallen to 677,000 units, down from around 1.2 million units during the same period a year ago. Reports in the local media have also said that more than 110 component suppliers have shut down and thousands of workers have lost their jobs over the past year, while the two largest state-run automakers, Iran Khodro and Saipa, are said to be suffering from overstaffing due to the decline in output. The automakers are also being hampered by the depreciation of the Iranian rial, the value of which has fallen by 50% in response to economic sanctions over the country's nuclear programme.