Abstract for: An Investigation into Iran’s Auto Industry and Analyzing the Effects of Importation on its Growth:A System Dynamics Approach

Nowadays Iran is going to become one of the major auto producers in the Middle East. Although Iranian car industry is reaching near 1,000,000 annual productions, the quality of the products is not comparable with global standards. Iranian auto industry, passing a period of maturation, is now in a situation, in which domestic car producers are supported by strict governmental laws, and import is severely limited. Thus there are not sufficient requirements to form a competitive market. In this paper, we will present a system dynamics model which maps condition of Iran’s auto industry in the recent years. The model is then used to provide insights for the current status of the industry, as well as testing some policies for simulating the auto industry’s growth.