Reviewing the Strategy of Iran’s Automotive Industry/ Investments with Unknown Future

He mentioned that many projects failed due to the leave of these companie. "According to the project, car production was meant to be produced with higher technology, so the part makers were attracted to sign joint ventures”, he said.

"On the other hand, domestic auto part producers also shared concessions with foreign companies with the aim of having better markets, more opportunities and financial support. Therefore, some of the companies succeeded to ink important contracts. This issue, attracted the domestic companies to start JV companies”, he emphasized.

"But with the leave of foreign companies, the motivation was gone and many companies faced problems because of the problem in money transfer. The sanctions’ effects were showing up”, Moghtaderi said about the problems of part makers.

Answering the question about the effect of joint ventures on technological aspects, he said: "Since the new project was in progress, it was not yet operational and remained in the planning phase so it did not came to the investment level with Renault. In IKAP the situation was a bit different due to contracts and investments; however that became a failure.”

Member of the Board of "ISMAPA” also said: "Initial works was done in the field of education, management system upgrade, Systems for improving the quality and transfer of technical knowledge and internal manufacturers were forced to adapt to themselves with the situation but it stopped. In IKAP, the procedure was one step ahead and there were investments in molding and purchasing machinery and equipment, but due to the situation, the projects failed and now the auto part makers are facing investments with unknown future.”