Problems of Iran’s Automotive Industry Competitiveness

Car industry is among the most important sectors of the Iranian economy, though recently it has experienced a rapidly mounting crisis. The present study aims to analyze latest trends in the sector and discover optimal ways to overcome crisis phenomena. One of the main problems is low competitiveness of its products, which is due to a set of economic and political factors. Rescinded sanctions against Iran have given a chance to change the situation, but under new conditions, it seems increasingly relevant to find out about mechanisms, which will maintain reasonable balance between attraction of foreign companies possessing leading-edge technologies with efficient protection of the national industrial interests. The research of Iran's existing state strategy and general situation in the sector enabled the author to suggest a number of mechanisms for reforming the industry. These mechanisms entail creation of joint ventures as well as the state's co-financing of modernization projects in the sector and national research and development.