TEHRAN, Iran, Oct.8
Trend:
Iran's auto parts manufacturers are partly producing basic materials due to pressures of sanctions and difficulty to import, said the Head of Iran's Brake Association.
"In the current situation there are no auto part shortages in the domestic market since all factories are working in three shifts and even have surplus products," said Hossein Lajevardi, Trend reports citing IRNA.
"The difficulty of obtaining foreign currency from the Central Bank of Iran to import is one of the problems for producers. The basic material needed for each product includes 30 components and following standards is very important in production," he added.
According to him, domestic companies can produce brake and clutch for vehicles and railway wagons that would reduce import costs, so it is expected that domestic companies would be supported.
"Another problem is the bureaucracy in the country's customs that would hold imported basic materials for several months and the delay would cause the material to expire and lose the quality. While the price of basic materials has increased compared to previous years but the volume of bank loans has not changed" he said.
Lajevardi also noted that domestic companies have to store large amounts of material and equipment in their store houses, the customs are to release the remaining imports so the country would not face the auto-part shortage by the end of current Iranian year (started March 20, 2020).