Iran’s car tire production rose by 10 to 15 percent last year, while total tire output saw an 8.0 percent increase, according to Jamal Mirzaei, a board member of Iran’s Tire Industry Association.In an interview with IRNA, Mirzaei said the goal for this year is to raise production by another 15 percent to meet domestic demand.He emphasized that in line with Leader Ayatollah Seyed Ali Khamenei’s designation of the year as one focused on investment in production, the tire industry requires new investment to boost output and generate new jobs.Mirzaei noted that Iran currently has a production deficit of 120,000 tons. He said expanding capacity from the current 300,000 tons to 450,000 tons would allow the country to meet domestic needs and shift focus toward exports.He highlighted the opportunity for increased foreign currency earnings once local demand is fully met, describing exports as a viable path to economic growth.Currently, about 50,000 people are directly or indirectly employed in 11 major tire manufacturing units. Of these, four companies have ongoing expansion projects—each around 40 percent complete—that aim to add 50,000 tons of new production capacity this year.Mirzaei cited delayed currency allocation as the industry's most pressing issue. Timely access to foreign currency is essential to ensure continuous production, he said, warning that shortages affect raw material supply. He also blamed restrictive monetary policies for delays in bank financing.He criticized the reduction in tire import tariffs over the past two years, arguing that the lower duties have disproportionately benefited importers. He suggested that domestic production would have been better supported by a tariff range of zero to six percent.The official warned that the current tariff system has created opportunities for rent-seeking in the import market and stressed the need for protective measures to help local manufacturers grow.According to Mirzaei, production costs surged by eight to ten percent in the second half of last year, driven by rising prices for raw materials, foreign currency volatility, and issues in the petrochemical and mining sectors.Despite these challenges, he assured that there is currently no shortage of tires in the market, as production has increased.Under a recent directive from Iran’s customs administration, imports of passenger car tires will now be subject to 16 percent commercial profit tax and 4 percent customs duties. (ICE TEHERAN)

Fonte notizia: Tehran Times