Iran Parts Makers May Merge

EghtesadOnline: Iran's Automotive Policy Council is considering the possibility of merger of auto parts manufacturers to cut costs and to cater to the needs of the market which is facing shortage in auto parts supplies.

News ID: ۷۷۶۹۷۹

13 June 2017

During a session held on Thursday attended by Saeed Madani, deputy minister of industries, mergers were proposed.

According to Madani the council believes in the need to merge different firms active in the field of manufacturing motors, gearboxes, axels and other auto-parts so as to bring out the best in domestic capabilities.

Madani said the mergers would benefit the industry as it will "remove the problems related to spare part supplies."

According to Financial Tribune, the excessively wide variety of heavy duty vehicles which have been imported in the recent years — with no governmental oversight— has overburdened the local auto parts makers.

According to the official, the excessive variety has rendered mass production of parts for single models unfeasible. Therefore, as the required parts are not always available, they have to be imported.