How banking facilities could help Iran’s auto industry (exclusive)
Baku, Azerbaijan, Sept. 26
By Farhad Daneshvar, Mehdi Sepahvand – Trend:
While Iran's car manufacturing industry urges the auto part makers to produce qualified spare parts, the latter criticize the manufactures for failing to meet the mutual commitments.
The auto part makers suggest that allocating banking loans and facilities, as well as government support could help the auto part manufacturers to improve the quality of their output.
"The reasons why we seek foreign cooperation: 1. To improve our technology. 2. To enter international markets which these foreign partners already possess," Mohammad Reza Najafi-Manesh, the head of Auto Parts Association, told Trend.
Apparently a series of lengthy delays in payments as well as the failure of the carmakers to purchase the spare parts at reasonable prices have caused the auto part makers to lose the business to foreign rivals.
"There are some issues that we hope to solve in the coming session next week at the Ministry (of industry)," he said.
An official with the auto part making industry earlier suggested that domestic producers account for a small share of the spare parts offered in the Iranian market as about 85 percent of auto parts in the market are foreign-made products.
It seems that the auto part sector is suffering from lack of financial resources, has failed to develop technologies and knowledge.
While the auto part makers urge the government to provide support, the Iranian industrial policymakers advice the auto part makers to lessen their dependence on the domestic market and turn to exporting their output to foreign countries.
This is while car manufacturers criticize the auto part makers of failing to upgrade their technology and producing substandard spare parts.
"Our parts are being produced under the same standards as demanded by car makers. If not so, then the parts won’t be used because they undergo checking," Mohammad Reza Najafi-Manesh said.