Iran's automakers need to focus on certain brands

Business Materials 24 March 2020 16:59 (UTC +04:00)
Iran's automakers need to focus on certain brands

TEHRAN, Iran, March 24


Iran's automakers should reduce diversity in their products to solve the issue of auto part import, said an expert in auto industry.

Karim Sanjari has discussed issues related to address auto industry problems in current Iranian year (began March 20, 2020) in an interview with Trend.

"Some brands that used to import auto parts are now focused on local supplies. Although they do not have high quality standards and do not always comply with environmental regulations, they can initiate production, since there is domestic auto part making network ready for mass production," the expert said.

"The second-hand imported vehicles have new platform to enter the country, but given that they do not possess the quality of new vehicles, auto parts also have to be imported," Sanjari added.

"The US sanctions against Iran in 2018 is stricter than sanctions imposed in 2011 and 2012. Even China has retreated due to them, let alone Turkey. Thus, it's more reasonable not to create too much diversity in domestic auto production in the current situation," he noted.

"If automakers can produce auto parts domestically, then they will be less dependent on imports," the expert said adding that in this regard, it's better to reduce production diversity.

"In my opinion, all auto companies should focus on specific models that have less need for importing auto parts and can be massively produced domestically," he added.

"If the production increases to 1.2 million vehicles, the prices will drop, but if they follow the pattern of the last year (March 21, 2019 - March 20, 2020), there will be more severe price crisis," he said.