South Korean Parts Makers Hold Cooperation Talks with IAPMA

EghtesadOnline: Members of Iran Auto Part Makers Association met with South Korean parts makers over the weekend in Tehran and discussed prospects for expanding ties.

News ID: ۷۸۰۸۶۸

19 December 2017

South Korean Ambassador Kim Seung-ho was in the meeting and stressed the need to build collaboration between Iranian and South Korean automotive industries, news website Khabarkhodro reported.

However, according to IAPMA Secretary Maziar Beiglou, lack of transparency in the local auto industry has hampered strong collaboration. He says, “Lack of accurate data on the performance of Iranian auto parts makers has made South Korean suppliers reluctant to invest in Iran and work with local firms.”

He says the association is committed to address the issue and provide South Korean companies with detailed reports on activities of local parts makers, Financial Tribune reported.

IAPMA is set to hold a conference on foreign investment protection in Iran and banking issues. The Central Bank of Iran and the Organization for Investment, Economic and Technical Assistance will also be involved.

South Korean automotive companies are present in Iran and carmaker Hyundai has a deal with local firm Kerman Motor under which three models namely Hyundai i10, i20 and Elantra are assembled in the central city of Bam in Kerman Province.

During the eight months to November, observing a 268% year-on-year growth, 25,675 units of South Korean-derived cars were assembled in Iran. The vehicles have a 3% share of the market.