Iraq to localize vehicle production with new Emirati partnership

Shafaq News- Baghdad

Iraq’s General Company for Automotive and Equipment Industry signed a partnership with Iraqi and Emirati firms to establish an integrated vehicle assembly and production system, the Ministry of Industry and Minerals announced on Sunday.

In a statement, the ministry explained that the project will assemble and market buses, light trucks, passenger cars, heavy trucks, and specialized equipment. Company Director General Dana Saadallah Saeed said the agreement aligns with a national strategy to localize industry, reduce reliance on imports, and expand industrial investment to support economic diversification.

Earlier this month, the company assembled 360 Kia 2700 field vehicles at its Babil plant, the first batch of a planned 1,000 units. Production was completed across eight stages, including chassis assembly, fuel and cooling systems installation, body integration, technical inspection, and road testing under quality control supervision.

The localization drive comes amid heavy dependence on imported vehicles. In 2024, Iraq imported more than $700 million worth of Japanese vehicles, while South Korea’s Kia recorded the fastest growth in domestic sales.