Automotive Industry and Its Place in the Economy: Case Study Iran Auto Industry
Ismael Rezaeinejad *
Department of Marketing, Peoples' Friendship University of Russia (RUDN University), Miklukho-Maklaya Street, 6, 117198 Moscow, Russian Federation Russian.
*Author to whom correspondence should be addressed.
Abstract
In examining the economic position of the world countries, the automotive industry is considered one of the indicators of development due to its value and unique position in the network of industrial production and after-sales services. This industry is considered an essential industry due to its extensive relationship with its upstream and downstream chains. It has an essential place in industrial development and production prosperity so that it plays an influential role in economic and even cultural growth and development. The automotive industry in Iran also has an important position in the national economy with a 20% share of the value-added of the entire industrial sector and a share of about 4% in the gross domestic product (GDP). Iran's 50-year-old automobile industry has witnessed many ups and downs. In this paper, the author explains Iran's automotive industry's problems and provides appropriate strategies to overcome the existing challenges.
Keywords: Automotive industry, macroeconomic, Iran, economic development, political challenge, COVID-19