The biggest auto part export contract has been signed after a period of silence about auto manufacture contracts and part producers export share increment. Now they are willing to find a way out of broke by exporting parts.
Khodrocar – The joint venture contract of Novares – Riseco finalized in the past two days, a month after the primary signing in the March 2018. The contract is about producing plastic parts with high technology in Iran. It would be the first step for Iranian manufacturers to join the international race of supplying Renault and Peugeot parts.
According to the contract, exporting auto parts is the main focus of both side of this contract.
Now the question is would this contract and joint venture production saves the part industry and improve manufacturers’ conditions? Could they use this chance to increase the quality of their products?
Novares – Riseco joint venture would start its activity in the first half of the year by supplying plastic parts for Renault=Pars, IKCO and SAIPA in the Safadash industrial zone of Tehran. The first phase of this project would make 300 direct jobs in 2 years.
"These contracts won’t be beneficial for the industry if they just want to supply local markets. Contracts should contain an added value for the whole industry. They are beneficial and valuable by focusing on exportation and manufacturing export oriented product increment.” Said Farbod Zave, an expert on the auto industry.
"Regarding to the condition of exchange in Iran, producing auto parts to supply local market is not efficient. The only way for making some added value and have more income is the export market.” He told Khodrocar reporter. "If exporting level is more than a local sale, then the contract is beneficial for the market.”
Auto part manufacturers’ path won’t be easy this year because some of manufacturers are limiting their products due to the new restrictions in currency and first materials and also other manufacturers are broke. Therefore, the part industry needs the government support as like as they are supporting automakers.
Khodrocar Reporter: Negar Mirkarimi
Khorocar Translator: Amin Zamani
According to the contract, exporting auto parts is the main focus of both side of this contract.
Now the question is would this contract and joint venture production saves the part industry and improve manufacturers’ conditions? Could they use this chance to increase the quality of their products?
Novares – Riseco joint venture would start its activity in the first half of the year by supplying plastic parts for Renault=Pars, IKCO and SAIPA in the Safadash industrial zone of Tehran. The first phase of this project would make 300 direct jobs in 2 years.
"These contracts won’t be beneficial for the industry if they just want to supply local markets. Contracts should contain an added value for the whole industry. They are beneficial and valuable by focusing on exportation and manufacturing export oriented product increment.” Said Farbod Zave, an expert on the auto industry.
"Regarding to the condition of exchange in Iran, producing auto parts to supply local market is not efficient. The only way for making some added value and have more income is the export market.” He told Khodrocar reporter. "If exporting level is more than a local sale, then the contract is beneficial for the market.”
Auto part manufacturers’ path won’t be easy this year because some of manufacturers are limiting their products due to the new restrictions in currency and first materials and also other manufacturers are broke. Therefore, the part industry needs the government support as like as they are supporting automakers.
Khodrocar Reporter: Negar Mirkarimi
Khorocar Translator: Amin Zamani
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