Abstract
Coinciding with World War I, automobiles entered eastern Iran. The change in vehicles from traditional to modern led to the emergence of a new class of active sellers, who were generally of non-native and non-Muslim origin. With the implementation of the automobile import monopoly law in 1315, the operating conditions of companies active in the automobile field changed. The present research was conducted using a library method and based on documents and press to answer these questions: What changes did the arrival of the automobile bring to transportation activists? Who generally worked in this field of automobile trade? What was the origin of the owners of motor transportation businesses? And what impact did the automobile import monopoly law on the activists in this field? The present study showed that after the arrival of automobiles in eastern Iran, the actors in the field of transportation changed seriously and instead of Iranians, Sikhs, Indians, Iraqi Arabs, Lebanese, and Armenians became the most important actors in this field. The trading houses of Malek Jamal-eddin, Mota sangeh, P.S. Motor, Kataneh, Hasso & Partners, Mashal & Partners, Avancof Akhavan & Partners, Arsham Arakelian, Rabi & Partners, H.J. Tafangchian, and Hasgel Lavi were the main players in selling cars and spare parts in Mashhad. After the automobile import monopoly law, the Indians withdrew from this economic sector and this trade fell into the hands of Iranian joint-stock companies, but the Arab-Christian Trading House continued its activities.
Keywords: Automobile trade, spare parts, Mashhad, East Iran, Pahlavi I, Import monopoly law.
Introduction
Iran’s foreign trade during the Qajar period and the early Pahlavi period faced serious imbalances. One of the main reasons for this was the lack of customs regulations and the freedom of foreign trade, which led to the large-scale import of goods such as automobiles and spare parts. For this reason, between 1930 and 1941, laws were passed and enforced to create a state monopoly over foreign trade. This policy made it more difficult to import automobiles into eastern Iran and brought new actors into this field. Because Iranians had little experience in this new area, agencies for selling cars and spare parts were mostly established by trading houses and representatives connected to manufacturing companies. Mashhad became one of the main centers for the trade of automobiles and their spare parts. This study examines the first two decades of the arrival of automobiles in Mashhad (1921–1941), focusing on the impact of the monopoly law on the import of cars and their parts and its effects on those active in this field. It aims to answer the following questions:
- What changes occurred in this economic sector with the shift from traditional to modern transportation?
- Which trading houses and companies were active in the sale of automobiles and their spare parts in Mashhad and eastern Iran?
- What were the origins of automobile and spare parts sales agencies in Mashhad?
- What impact did the 1936 monopoly law on the import of automobiles and their parts have on traders in Mashhad and eastern Iran?
Materials & Methods
This study is a historical research project. The data was collected using library research, mainly based on documents and newspapers. After organizing the information, the key individuals and businesses involved in automobile imports in Mashhad and eastern Iran were identified. Their activities were then examined using a descriptive and analytical approach, and the effects of the monopoly law on the import of automobiles and spare parts on these actors were analyzed.
Discussion and Results
Automobiles were an imported product in Iran, and many sales agencies were established in Mashhad to sell them. During the reign of Reza Shah, the most important cars in Mashhad were made by American companies such as Ford, Chevrolet, Dodge, White, Chrysler, and Studebaker. The import of American cars significantly improved Iran’s trade relations with the United States. The import of automobiles into eastern Iran from 1921 to September 1941 can be divided into two periods. The first period was before the monopoly law of 1936, when imports were mainly handled by Indian trading companies such as P.S. Motor Company, N.A. Mullick, Jamal al-Din, Bombay Cycle & Motor Agency Ltd., Kataneh, Hasso & Co., and Mashal & Co. The second period, from 1936 to September 1941, began after the monopoly law was introduced. During this time, joint-stock companies such as Rah Peyma, Motordar, and Auto Tehran took control of importing automobiles and spare parts. At the same time, Arab-Christian trading houses—such as Tofangchian, Ovanessof & Co., Arasham Arakelyan, Rabie & Co., and Haskel Lawy—were active in Mashhad. Ford cars were imported by P.S. Motor Company, while N.A. Mullick sold products from General Motors and Chevrolet. Bombay Cycle & Motor Agency Ltd. was also the representative of the American Dodge company. After the Indian trading houses, Arab-Christian merchants—mainly from Iraq, Syria, and Lebanon—played an important role in the automobile and spare parts trade in early Pahlavi Iran. One reason for their importance was that Syrian and Lebanese ports were key routes for Iran’s imports and exports. Kataneh was one of the most important Arab trading houses in car sales during Reza Shah’s time and represented Dodge, Graham, and Chrysler. Hasso & Co. represented the B.F. Goodrich factory, while Mashal & Co. had exclusive representation in Iran and Iraq and sold Firestone tires, Rio cars, and Grease Alu products in Mashhad. After the monopoly law was implemented in 1936, companies such as Motordar, Auto Tehran, Rah Peyma, and Iran Motor were established. This reduced the role of Indian trading houses in eastern Iran, but Arab-Christian businesses continued their activities. Ovanessof Bros. & Co. became a representative of Auto Tehran. Arasham Arakelyan, as a representative connected to Ovanessof, sold Ford and Firestone tires. Rabie & Co. represented Motordar Iran. H.G. Tufendjian was active in selling spare parts such as tires and tubes and importing Dodge parts. H.J. Lawy Company also represented General Motors.
Conclusion
The import of automobiles and spare parts in eastern Iran was mainly carried out by Indian trading houses. Imports through Iraq and the Levant were handled by Arab-Christian trading firms with Iraqi, Syrian, and Lebanese backgrounds. Companies such as Kataneh, Hasso & Co., and Mashal & Co. were active in this field. After the approval and implementation of the monopoly law on automobile and spare parts imports in 1936, private trading houses faced serious challenges. The government established large joint-stock companies such as Motordar, Auto Tehran, Rah Peyma, Iran Motor, and the Central Automobile Office. The first effect of this law was the reduction of Indian trading houses’ activities in eastern Iran, while Arab-Christian firms began to play a more important role in Mashhad. Their proximity to the capital and their connections with central authorities and state companies helped some of these Arab-Christian firms remain active, often as limited representatives of government companies. The dominance of Indian, Arab, and Christian merchants over Iranians in the import of automobiles and spare parts was mainly due to Iran’s economic weaknesses—especially the lack of large, well-funded companies and limited economic connections with the outside world.