What Support do Auto Part Manufacturers Need?

Khodrocar – Two days ago, during the unveiling ceremony of two new production of Iran Khodro, Hashem Yekkehzare, Iran Khodro’s CEO started to mention the point that the part manufacturers need support.

Later, Ali Larijani (Speaker of Iran’s Parliament), Aziz Akbarian (Chairman of Industries of Iran’s Parliament) and Mohammad Shariatmadari (Minister of Industry, Mine and Trade) talked about the part manufacturers and stated that they need a special support.

Bahram Shahriary, told Khodrocar regarding the issue: "No government has ever been able to help the industry.”

He believes that part manufacturers have chosen the wrong way because the domestic production of vehicle parts have been uncertain during the last years and many companies have been bankrupted.

Shahriari continued: "Now that the government talked about supporting the part manufacturers, that should be done correctly. The government should use the full capacity of these companies and the vehicle parts should be produced domestically or should be assembled in Iran.”

The auto industry expert added: "The government should supervise this industry and avoid interfering, so that the part manufacturers will be able to grow. During the presidency of Mahmoud Ahmadinejad, the government tried to improve the part manufacturing industry but those efforts was useless indeed.”

Answering to the question about how this industry should be supported, he said: "The government should fix the exchange rate first, because the companies must be sure that they won’t make financial losses.”

According to Shahriari, most manufacturers in other countries know how many parts they produce and supply during the year but in Iran it’s different. They don’t have specific programs.

He emphasized: "The government’s interference in part manufacturing industry may cause serious issues to the market.”

Khodrocar reporter: Negar MirKarimi
Khodrocar translator: Maziyar Jafarieh