IRGC enters $15 billion auto industry to carry out Khamenei's orders

Despite previous reports of military entities withdrawing from the Iranian economy, the commander of the IRGC Aerospace Force has announced the formation of a joint committee between the IRGC and the Ministry of Industry to enter the automotive sector.

According to the IRGC News website, Amir Ali Hajizadeh, who was speaking with the acting Minister of Industry of Iran at the end of the meeting on Tuesday, June 10, announced the purpose of this work as "transferring the IRGC's experiences and information in the field of research" to automakers.

After the meeting, Hossein Modarres Khiabani, Acting Minister of Industry, said that we are using technologies and facilities in the missile field that are related to the automotive industry.

The commander of the IRGC's Aerospace Force and acting Minister of Industry also referred to the statements of Ali Khamenei, the Leader of the Islamic Republic, regarding the defense and automotive industries, saying that these statements have placed a "task" on their shoulders.

Ayatollah Khamenei said on May 7 of this year: "The same mind and thought that can produce a satellite" can also produce "a car that consumes five liters of gasoline per hundred kilometers."

The Revolutionary Guard has not had any announced activity in the automotive industry, although in recent years there have been suggestions that the military institution could enter the automotive industry.

Manouchehr Motegi, former director of Iran Khodro Company, proposed in December 2009 that the shares of Saipa and Iran Khodro companies be transferred to the Revolutionary Guards Cooperative Foundation.

Amir Ali Hajizadeh, commander of the IRGC Aerospace Force, also said last December: "Many people expect the IRGC to enter this industry and produce high-quality vehicles, given the quality of domestic cars."

In another comment on June 29 of this year, he said: The IRGC has a "technological industry" that it is ready to transfer to the automotive industry, "especially the Iran Khodro Industrial Group."

The IRGC's planning and desire to enter the automotive industry comes at a time when reports had previously been published about the military's withdrawal from the economy.

Iranian Defense Minister Amir Hatami announced in January 2017 that the Leader of the Islamic Republic had instructed the General Staff of the Iranian Armed Forces to withdraw the armed forces from "unrelated" economic activities.

It seems that, given the recent statements by the commander of the IRGC's Aerospace Force, the automotive industry has not been assessed as part of the set of economic activities "unrelated" to the IRGC.

In addition, on May 20 of this year, the Islamic Consultative Assembly announced in its investigation report into the two automotive companies, Iran Khodro and Saipa, that the interference of security agencies in these companies has led to increased corruption and losses.

It is unclear why, despite the opposition and warnings of the parliament regarding the activities of security agencies in the automotive sector, military agencies have now entered this field.

According to statistics from the International Organization of Vehicle Manufacturers, Iran's automobile production in 2019 decreased by 25% compared to the previous year, reaching 821,000 units, of which 770,000 were passenger cars.

Despite the sharp decline in automobile production in Iran, the automobile market, estimated to be worth between $12 and $15 billion per year, is still considered one of the most important and attractive production and brokerage markets in the Iranian economy.

Source: Radio Farda