Impact of Exports on Auto Parts Industry Scrutinized

EghtesadOnline: An automotive expert has examined various aspects of parts’ export and how it would influence the component manufacturing industry

News ID: ۷۵۱۸۸۰

14 September 2022

An automotive expert believes exports will help improve the quality of parts and boost their manufacturing industry.

Recently, the Institute of Standards and Industrial Research of Iran obliged automakers to procure parts only from manufacturers with export licenses, as exports create a competitive environment and help improve the quality of parts.

“Some parts manufacturers can produce parts that are suitable for export, and for some, the mechanisms have not yet been provided, one of the reasons for which is the weakness in global interaction and the challenges of currency transfer,” Saeed Madani, a former CEO of SAIPA Automotive Group, was quoted as saying by Khabar Khodro.

Currently, domestic auto parts are produced for older models and the output of new cars has not yet reached a level that would make parts production cost-effective.