TEHRAN – Iranian Industry, Mining and Trade Minister Reza Rahmani said on Wednesday that domestic manufacturing of auto parts is going to lead to a decrease in the prices of passenger cars in the country.

“Currently, our most important program is to manufacture auto parts domestically, which will inevitably lead to lower prices,” Rahmani told IRNA.

“Usually the prices of all domestically-made parts and commodities are lower since domestic production costs are lower and more economical,” he said.

He also noted that the country’s auto makers are going to suspend manufacturing of two passenger car brands by June 2020, adding that 18,000 pre-purchased cars of such brands are to be handed over to the customers before terminating their production.

Last week, Rahmani had said that his ministry plans to hand over the country’s major auto makers to the private sector.

Since the U.S. reimposed sanctions on Iran to pressure the country’s economy, most of the European automakers active in the country has left under U.S. pressures, however Iran has been taking necessary measures to mitigate the impact of the sanctions and counter the U.S. actions.

Improving and boosting domestic production has been one of the major strategies that Iran has been following in the past two years in order to increase its economy’s independence.

In mid-May, Rahmani issued a directive on “strengthening domestic manufacturing of imported auto parts”.

He said the policy of domestic manufacturing of auto parts should be seriously followed up, and in this due the capable manufacturers should be seriously supported.

EF/MA