Bahare Oryani

Abstract

The main purpose of this project is a futurological study of automotive industry in Iran emphasizing on passenger cars. A review on the evolution of the car industry global value chain showed that this industry has been moving toward integration and outsourcing. While, referring to the successful countries experience (such as India, China, Turkey) and unsuccessful countries (such as Russia), the best way to develop the car industry is joint venture investment contracts in such a way that it also leads to the protection of domestic production (this could be achieved through utilizing such rules as local content, and such aspects as research and development, technology spillover, etc.). Accordingly, we suggested merger and integration strategy (joint venture investments) for Iran's car industry. Solutions required for the implementation of this strategy include: promotion of cooperation and investment; policies related to pricing; issues related to government protection policies (either direct or indirect) and regulatory and information issues.

Keywords:

Futurology, Automotive industry, Iran