Iranian company aiming 40% localization of Scania parts
Tehran, Iran, November 15
By Mehdi Sepahvand –- Trend:
An Iranian company that has been importing auto parts from the German truck maker Scania is planning to achieve 40 percent localization of the manufacturing of the parts.
"We have already started localization. Our groups are working with Scania and we should go as far as 40 percent," Mammut Diesel Parts and Services Sales Manager Hamidreza Khabbazzadeh told Trend November 15.
"Iranians have the ability to manufacture parts, especially in cities like Isfahan and Tabriz. We can even become exporters," he said.
Asked about the status of part imports to Iran, he said lack of organized oversight over the market has left the way open for numerous low-quality brands.
"They are not standard parts which if used, will cause serious damages. Everyone knows about their distribution. All the sellers have certificates, but nobody takes action."
He said transparency in the importation and distribution of parts can help grow the quality of the market a great deal.
Localization of products is required by the Iranian government. In its efforts to expand trade ties with other countries in the post-sanctions era, the government has stressed that countries working with foreign partners should focus on at least partially localizing the products and also aiming foreign markets.