News ID : 4327
Publish Date : 15 March 2021 - 09:02
While the conditions for entering the defense industry as well as the military industry into the automotive industry will soon be possible, activists and experts in this industry emphasize that the investment conditions of these industries should be similar to other industries, including automobiles, otherwise any further advantage can be It is a loss for the car industry and calls into question the initial goals of this presence.
Khodrocar - Rumors of the formation of the third pole of the automobile industry, which had been raised before the 1990s, have been highlighted more than ever with the anticipation of Article 19 of the Automotive Industry and Market Transformation Plan, the initial text of which was presented to the Speaker of the Islamic Consultative Assembly a few months ago.

According to this article, the military industry and companies affiliated with the Armed Forces can develop automotive technologies for the production of parts and mass production or customization of automobiles, and it is natural that according to this law, a third pole of automobile manufacturing will be formed.

Meanwhile, Mohammad Shariatmadari, the then Minister of Industry, Mines and Trade, had previously asked private sector activists to launch the third pole and compete with the country's two largest automakers, which remained only an idea until the MPs predicted this. The material in the car industry and market transformation plan seeks to revive this idea.

Ruhollah Izadkhah, Chairman of the Automobile Group of the Industries and Mines Commission of the Islamic Consultative Assembly, pointed out that the country's car market is currently a monopoly market, and in order to make this market more competitive, new players must enter this market. Emphasize that facilitating the entry of military institutions in the automotive industry can help make the market more competitive. Thus, it seems that the Islamic Consultative Assembly in this plan is not only seeking to supply parts of the country's defense industry; rather, it wants institutions to enter the field of automobile manufacturing, and by legalizing the presence of the military, it seeks to open their hands to enter the automotive industry.

At the same time, the serious entry of the defense industry into the automotive industry should be considered at the same time as the intensification of international sanctions and the shortage of some parts in the automakers' production lines. The IRGC Air Force Commander also explicitly stated and emphasized that their activities would never be a competitor to the private sector.

The head of the automotive working group of the Industries and Mines Commission even stressed that the defense industry should be allowed to manufacture and mass-produce, as well as be allowed to supply cars to the market.

"The presence of the military was already in commercial vehicles, but they always wanted to enter the field of investment in light vehicles, and it relies more on new knowledge and technologies, because of their familiarity with these areas due to their activities in Military areas.” Saeed Madani, expert of auto industry told khodrocar reporter.

"The important point in the cooperation of the military in the automotive industry is this cooperation and reasonable price, so if the military operates in this sector and produces parts or vehicles at competitive prices, there will be no problem in the automotive industry.” He added.


"Usually, in times of peace, the Chinese enter the military and defense industries, other industries, such as the automobile industry, because these industries have a very high potential, and if the products are economical and have the ability to operate in economic scale and can enter a competitive phase. , Will not be harmful as long as it is subject to macroeconomic policies and general policies of the country in relation to the automotive industry, that is, if they are to consider issues such as product development, production diversity, exports and the like, they must be subject to fixed rules.” He said.

"If they are supposed to have certain advantages and car manufacturers do not have this advantage, then the car industry as a whole will suffer, so it seems that the bilateral cooperation of these industries with car manufacturers can be a great help to the car industry.” He continued.

"The military industry, given its capabilities, can be a great help to automakers in transferring technology, but parallel investments must be made at a time when current capacities are being used to the fullest. If lines are to be built now and only 20 to 30 capacities are to be used with a total investment, it will have no economic justification.” He mentioned.

"This cooperation should be done within the framework of the general policies of the automotive industry, and in the first stage, it should be allowed to increase the current capacity, which is the production of about two million vehicles and only 50% of it is used, for example, to 80% Reach, in the stage can be done to increase capacity.” He said.
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