FROM MODEL TO MUDDLE: IRAN’S CAR INDUSTRY AND ITS CHINESE TECHNOLOGICAL KNIGHT

Abstract

Following the signing of the JCPOA nuclear deal between Iran and the 5+1 countries in June 2015 and the subsequent lifting of international sanctions, many observers predicted that Chinese carmakers would be squeezed out of the Iranian market by European and South Korean manufacturers. In 2018 however, after the Trump administration withdrew the United States from the agreement and reinstated sanctions, the situation moved in favour of the Chinese car industry. China has now become the biggest overseas player in Iran's automobile market. This article argues that the abandonment of the JCPOA by Washington led to the ‘China-ization’ of the car industry in Iran and shows how Iranian carmakers played an instrumental role in this process.