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of state and the way in which it attempts to support and enhance the auto industry can clear some indicates of why Iranian automakers have not developed as it was expected and planed.

Investment Policies

Since the Iranian automakers are controlled by the state, they have the advantages of financial support from the government budget. For ten years between 1979 and 1989 -period of war and the construction afterward-, the industry went down and posed the challenge that whether auto manufacturing should be supported or scrapped. Early in 1992 the Iranian parliament approved the Five Year National Vehicle Act, and it became the basis for a calculated and determined move towards achieving a national auto industry policy. This event helped clarify the legal roadmap of the industry. A direct result was Rls 1,100 billion investments, made between 1994 and 1998 on auto-part manufacturing other than the vehicle manufacturers themselves and the ministry of industry and mine was responsible for it in line with the government program to develop non-oil productions. (Irano-British Chamber of Commerce, Industries and Mines, 2002)

Despite all investment which automakers have had during these years, less and less was spent on the research and development part, therefore the knowledge and information bases of auto industry have a low level of improvements, while the factories spent the financial aid on machinery and other expenditures but not on developing their own technology and design. However the result of government investment has helped to build an infrastructure in terms of educated and skilled people who encouraged working in auto-part manufacturers and machineries which increased the capacity of production. It shows maybe the government can classify the area in which it devotes the budget and also define other sorts of aid and investment which is happened in recent years such as providing the opportunities to deal and set agreements with foreign manufacturers.

Market Policy

Iran's automotive market is not easily accessible to foreign companies. Imports are only allowed for limited number (10,000 per year in 2004) and in special cases for governmental organizations or by car manufacturers with specific terms (See foreign investment, 3.Licensing part); however at the moment, debates are going on the issue of tariffs and taxes on importing cars and the adjustment of import policies. But protection policies in long-term and extremely low level of imports have built up an oligopoly market in Iran which is determined mainly by two main state owned companies, Iran-Khodro and Saipa. The main result of this type of market has been exposed on the price and quality of products. The lack of foreign competition in the market has allowed domestic car companies to set extremely high prices, sometimes up to 100% higher than the total cost, and offer poor quality products compared with the international standard. Despite of several strategies to improve the quality of parts and products during the years, there is no encouragement for firms and factories as long as they have no competitors and the market has no other choice except the poor quality and high price domestic produced cars. <本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。