Khodrocar - The localization movement of the parts industry, which was key a year ago, entered its fourth phase yesterday with the conclusion of new contracts. According to activists in this field, unlike the previous three roundtables, we are witnessing the implementation of the executive incentives.
"Iran Khodro has announced its agreement with the incentives for domestic tables, but negotiations with Saipa are ongoing, and the automotive group has announced that it will announce incentives in this area soon.” Mehdi Motaleb Zadeh, deputy of part makers association told khodrocar reporter.
"Purchasing at the time of FOB-based investment of foreign parts, non-selection of new source and single source parts, one-month cash payment of receivables, purchase from one source and concluding a contract to return the capital period are some of the incentives provided in the fourth table. It is internalization because the lack of a single source leads to an increase in cost.” He said.
"The fourth internalization table includes about 56 sets of parts, which will be implemented with the participation of 37 parts manufacturers, which will be a total contract of 1100 billion tomans, which will reduce the value of about 70 million euros.” He said.
"Some of these components will enter the mass production phase in 9 months, and others will be completed in a shorter time, but by concluding an internalization contract, the component maker will set up the relevant production line, purchase technology and produce the mold. This depends on the cooperation of the government to stop the import of these parts after the mass production of these parts, which can be achieved by increasing the import tariff and customs profit.” He mentioned.
"The rate of internalization will be different in each car, so that in a car, the rate of internalization will reach up to 90%. But in the fourth desk the rate will reach to 92 percent.” He said.
"Apart from domesticizing parts, Iran Khodro has made special plans to localize raw materials, so that negotiations have been held for the production of high-strength steel with Mobarakeh Steel, while petrochemicals that have the ability to produce special polymers from other parts manufacturers. It is defined as a project and is currently being negotiated for the internalization of these materials, but some polymers are not capable of internalization because the necessary investment has not been made on it or there is no production technology.” He called.
"Some companies are currently working on ECU production, but the items they need are electronic components that are not part of the cost-effective internalization process. Electronic items in the world are being produced by a limited number of companies, but in billions of copies they are producing this piece, which meets the needs of all companies. Therefore, due to these conditions, since it is not possible to export these parts due to sanctions, so the production infrastructure of this part is not provided in the country, so it will not be economical for the current circulation of cars to produce and localize these parts.” He said.