Iran is interested in working with Japan on joint production of automobiles and car parts, reports the Iranian Students News Agency. Iranian Deputy Minister of Industry, Mine and Trade, Waliollah Afkhami-Raad commented in a meeting with a Japanese trade delegation, "Iran and Japan can invest in producing automobile and car parts, biocompatible and hybrid automobiles. Iran does not want to be only a consumer of other countries' goods. It wants to embark on joint production with foreigners and supply the needs of a market with 400 million clients in neighbouring states. Iran is looking for direct foreign investment and is interested in working with Japan." According to another news report, Japanese automakers are also looking to restart exports to Iran as the Japanese government is moving quickly to lay the groundwork for investment in Iran. Automakers including Nissan, Suzuki Motor, and Isuzu are looking to ramp up exports of auto components for assembly in Iran. Toyota is also considering restarting vehicle exports to Iran.
Significance: The development comes as Iran looks to boost direct foreign investment or joint investment in the country following the conditional lifting of sanctions. Iran's vehicle market and industry has gained renewed interest from various automakers following this diplomatic breakthrough. The statement of the Iranian minister also indicates the country's willingness to participate in the Trans-Pacific Partnership (TPP) free-trade agreement, which is likely to make Japanese automakers' vehicles more affordable in the US and Japan.
