January 18, 2017
Persian Khodro
The main problem of auto parts industry is the lack of governmental support
2016/12/26 | 12:47
We should not sacrifice the future of auto parts industry for a few contracts

The main problem of auto parts industry is the lack of governmental support

We should use past experiences in new negotiations and contracts and undoubtedly we should not sacrifice our domestic supply chain for making new contracts with foreigners.

According to PersianKhodro report, Arash Mohebbi Nejad, the secretary of Iranian Auto Parts Manufacturers Association, said: “in post-JCPOA period we have two subjects that we should focus on them. The first one is that now it become possible for us to restart our partnership with international automakers and I hope that our industry take maximum benefit from this new partnership. We should not act emotionally because the return of former partners is just the beginning.”
He continued: “The second subject that matters now is producing auto parts inside the country which will happen by equipping the supply chain of automotive and auto parts industry. Doing this matter requires significant technical knowledge and appropriate working capital which should be injected to the companies.”
Mohebbi Nejad emphasized: “Currently the biggest problem in the country's auto market is after-sales service that involves all manufacturers and importers. This is different from making a copy and it needs domestic production.”
The secretary of Iranian Auto Parts Manufacturers Association, said: “Now there are good ongoing investments in after sales service section and this is a good sign for the future of our automating industry.”
He pointed to the presence of large number of foreign automakers and parts makers, particularly in the 4th automotive Industry International Conference which is going to be held on 12-13 February 2017, and said: “I have a big concern about emotional actions of some of us in order to sign contracts with foreign parties regardless of some issues, such as domestic production without providing the necessary infrastructure, supply chain and after sales service and that will sacrifice customer needs.”
He added: “The new contracts will be successful only by taking 3 principles which are: domestic production of at least 40 percent of products, equipping the entire elements of supply chain and its infrastructure and providing after sale service. Before any new partnership agreement, the relevant authorities must study its feasibility study carefully.”
He added: “unfortunately none of the recent actions shows that managers are looking to strengthen the auto parts industry in the country because there is no specific facility for producers and it is just signing a contract which is for the benefit of others and it will repeat its past experiences.”
Mohebbi Nejad pointed to the fact that for the development of an industry the governments must focus on that and noted: “The distance between our auto parts industry with the world increased during the sanctions and now it is far away from its ideal point. We must consider the fact that the world is not waiting for us to get to that ideal point and this gap must be filled faster than previous with making investments and connections.”
At the end, he hoped that in the 4th automotive Conference the dialogs would be around internal and international subjects so that the problems of our auto parts industry such as the lack of cheap facilities, poor infrastructure and weak governmental support from this industry would be taken into consideration.