Revolutionary Guards Enter $15 Billion Automobile Industry to Execute Khamenei’s Orders

Despite previous reports about military institutions withdrawing from Iran’s economy, the commander of the Revolutionary Guards’ Aerospace Force announced the formation of a joint committee between the Guards and the Ministry of Industry to enter the automobile sector.

According to the Sepahnews website, Amir Ali Hajizadeh, speaking on Tuesday, June 10, at the end of a meeting with the acting head of Iran’s Ministry of Industry, stated that the purpose of this initiative is to “transfer the Revolutionary Guards’ experience and information in the field of research” to automakers.

Hosein Madares Khiyabani, the acting head of the Ministry of Industry, said after the meeting that they will use technologies and facilities in the missile field that are related to the automobile industries.

The commander of the Revolutionary Guards’ Aerospace Force and the acting head of the Ministry of Industry also referenced statements by Ali Khamenei, the Supreme Leader of the Islamic Republic, regarding defense and automobile industries, saying these statements have placed a “responsibility” on their shoulders.

Ayatollah Khamenei said on April 6 of this year: “The mind and thinking that can produce a satellite” can also produce “a car that consumes five liters of gasoline per one hundred kilometers.”

The Revolutionary Guards have not announced any previous activities in automobile manufacturing. However, in recent years, there have been proposals about the military institution entering the automobile manufacturing sector.

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

Amir Ali Hajizadeh, commander of the Revolutionary Guards’ Aerospace Force, said last December: “Many people, given the quality of domestic cars, expect the Guards to enter this industry and produce quality vehicles.”

On June 1 of this year, in another statement, he said: The Guards possess a “technological industry” that is ready to transfer to the automobile industry, “especially to Iran Khodro industrial group.”

The Revolutionary Guards’ planning and willingness to enter the automobile manufacturing industry comes at a time when there were previous reports about military personnel withdrawing from the economy.

Amir Hatami, Iran’s Defense Minister, announced in December 2017 that the Supreme Leader tasked the General Staff of the Iranian Armed Forces to withdraw the military from economic activities “unrelated” to their mission.

It appears that given the recent statements by the commander of the Revolutionary Guards’ Aerospace Force, automobile manufacturing has not been assessed as “unrelated” economic activity for the Guards.

Furthermore, on April 20 of this year, the Islamic Consultative Assembly in its investigation report on two automobile manufacturing companies, “Iran Khodro” and “Saipa,” announced that the involvement of security institutions in these companies has increased corruption and losses.

It is unclear why, despite the parliament’s opposition and warnings about security institutions’ activities in the automobile manufacturing sector, military institutions have now entered this field.

According to statistics from the International Organization of Motor Vehicle Manufacturers, Iran’s automobile production in 2019 reached 821,000 vehicles with a 25 percent decrease compared to the previous year, of which 770,000 were passenger cars.

Despite the severe decline in automobile production in Iran, the automobile market, valued between 12 to 15 billion dollars annually, remains one of the most important and attractive production and trading markets in Iran’s economy.

Source: Radio Farda