You have probably heard the saying many times that the automotive industry in Iran and South Korea has started together, but South Korea's progress in this field is not comparable to Iran, but no one has answered this question so far. What is the difference between car companies and why they have been able to gain a share of the global car market and we are still a long way from them.
Khodrocar - The beginning of the automotive industry in Korea dates back to August 1958. At that time, a Korean businessman named Koi Msyung and his two brothers built a car called Sibal using an old American pocket motor. In fact, the engine and suspension belong to damaged pockets. It was an army and its body was made entirely by hand.
South Korean President General Park Geun-hye had a detailed plan for economic growth since coming to power in a coup in Korea, and he wanted to bring his country closer to Japan economically very quickly. He was active in the field of social and political freedoms, but he made efforts to make the administrative system more efficient, to increase the productivity and attention of the mother industry.
He paid special attention to the automobile industry, and the production of the Sibal car was South Korea's first step in this direction.
Kim Heung-shek, editor of the Korean magazine, points out that there were not many cars in Korea in the early 1960s, and that only certain classes of people, such as government officials or the rich, used cars.
Of course, Kia, which is the first car company in Korea, was established 10 years ago under the name of Kyung Sang Precision Industries, but at that time its activity was limited to bicycles and metal wires.
Four years later, in 1338, Iranian businessman Na Jafar Akhavan was able to obtain the approval of the American Jeep Company to assemble the Jeep Willis in Iran. Built for the US military during World War II, the car was highly functional and durable.
Jafar Akhavan registered a company called Jeep Joint Stock Company to produce this product and built a factory at 9 km of the Karaj special road. He changed the name of this car to Jeep Shahbaz. In the same year, the Jeep Joint Stock Company also started assembling a van of Jeep products called Wagner, which was named Simorgh Pickup.
The choice of these products for the Iranian market at that time was a smart choice because according to the roads of Iran, two-wheeled long-wheelbase cars were among the best possible cars to travel in Iran.
In the early 1940s, the South Korean government approved and announced policies to promote the automotive industry. Under the policy, car imports were banned for 25 years, but the import of spare parts and assembly was free in South Korea.
The law banned the independent activities of foreign companies in Korea, and their continued operation in the country was possible only in the framework of cooperation with Korean companies for car assembly.
In fact, with the passage of this law and the payment of facilities to new car companies, the South Korean government sought to import Japanese and American technology into the country, and in practice, the cornerstone of the Korean car industry was formed with these laws.
The first company to be established in Korea after the announcement of these policies was Xinjin Motor Company, which began assembling several Toyota products in cooperation with the Japanese company. The most important goal of this cooperation was to strengthen the parts industry, but no technology was imported from Japan, and Xinjin imported all parts from Japan.
Perhaps the most important difference between the Iranian and Korean automakers began with these policies, as South Korea implemented a 25-year plan to promote the automotive industry in Iran. This industry did not exist. Cars in Iran were supplied through imports, so that in 1340, cars accounted for about 10% of Iran's total imports.
At that time, a law was passed to attract and protect foreign capital to the country, apart from which lending was exempt from customs duties and taxes if the car was imported in separate parts and assembled in the country, but this policy prohibited the import and Support for component makers for the domesticization of assembled vehicles was not as strong as in South Korea.
Tax exemptions and production support loans provided by the Iranian government to car assembly companies have led some former car importers to seek to assemble foreign cars in Iran.
In 1338, Iran Khalij Joint Stock Company started assembling a three-wheeled van produced by the Japanese company Mazda in Iran. After that, Kashanchi brothers started assembling one of the products of Fiat Italian company called Fiat 1100 by establishing Saipa Company. The Fiat 1100 production plant was inaugurated in May 1340 by the CEO of Fiat Company at the beginning of Abali Road in Tehran.
A year later, in 1341, the company began assembling British Land Rover cars in Iran. The assembly of this car in Iran was well received by the Ministries of Water, Electricity and Health, and most of these cars were used in the public sector of Iran.
In October of that year, two Mashhad brothers, Ahmad and Mohammad Khayami, founded Iran National Company to produce buses. They bought land on a special road in Karaj at a price of 10 rials per meter and started building a factory.
At the end of 1342, this company started the production of buses. Khayami imported the chassis and engine of the bus from Germany and mounted the room made by Iran National on it. The plant initially produced an OP bus per week.
Simultaneously with the establishment of Iran National Company in Iran, Kion Sang Bicycle Instrumentation Company in South Korea started car manufacturing. The company changed its name to Kia and launched its first product, a three-wheeled pickup truck belonging to Mazda.
South Korean President General Park Geun-hye had a detailed plan for economic growth since coming to power in a coup in Korea, and he wanted to bring his country closer to Japan economically very quickly. He was active in the field of social and political freedoms, but he made efforts to make the administrative system more efficient, to increase the productivity and attention of the mother industry.
He paid special attention to the automobile industry, and the production of the Sibal car was South Korea's first step in this direction.
Kim Heung-shek, editor of the Korean magazine, points out that there were not many cars in Korea in the early 1960s, and that only certain classes of people, such as government officials or the rich, used cars.
Of course, Kia, which is the first car company in Korea, was established 10 years ago under the name of Kyung Sang Precision Industries, but at that time its activity was limited to bicycles and metal wires.
Four years later, in 1338, Iranian businessman Na Jafar Akhavan was able to obtain the approval of the American Jeep Company to assemble the Jeep Willis in Iran. Built for the US military during World War II, the car was highly functional and durable.
Jafar Akhavan registered a company called Jeep Joint Stock Company to produce this product and built a factory at 9 km of the Karaj special road. He changed the name of this car to Jeep Shahbaz. In the same year, the Jeep Joint Stock Company also started assembling a van of Jeep products called Wagner, which was named Simorgh Pickup.
The choice of these products for the Iranian market at that time was a smart choice because according to the roads of Iran, two-wheeled long-wheelbase cars were among the best possible cars to travel in Iran.
In the early 1940s, the South Korean government approved and announced policies to promote the automotive industry. Under the policy, car imports were banned for 25 years, but the import of spare parts and assembly was free in South Korea.
The law banned the independent activities of foreign companies in Korea, and their continued operation in the country was possible only in the framework of cooperation with Korean companies for car assembly.
In fact, with the passage of this law and the payment of facilities to new car companies, the South Korean government sought to import Japanese and American technology into the country, and in practice, the cornerstone of the Korean car industry was formed with these laws.
The first company to be established in Korea after the announcement of these policies was Xinjin Motor Company, which began assembling several Toyota products in cooperation with the Japanese company. The most important goal of this cooperation was to strengthen the parts industry, but no technology was imported from Japan, and Xinjin imported all parts from Japan.
Perhaps the most important difference between the Iranian and Korean automakers began with these policies, as South Korea implemented a 25-year plan to promote the automotive industry in Iran. This industry did not exist. Cars in Iran were supplied through imports, so that in 1340, cars accounted for about 10% of Iran's total imports.
At that time, a law was passed to attract and protect foreign capital to the country, apart from which lending was exempt from customs duties and taxes if the car was imported in separate parts and assembled in the country, but this policy prohibited the import and Support for component makers for the domesticization of assembled vehicles was not as strong as in South Korea.
Tax exemptions and production support loans provided by the Iranian government to car assembly companies have led some former car importers to seek to assemble foreign cars in Iran.
In 1338, Iran Khalij Joint Stock Company started assembling a three-wheeled van produced by the Japanese company Mazda in Iran. After that, Kashanchi brothers started assembling one of the products of Fiat Italian company called Fiat 1100 by establishing Saipa Company. The Fiat 1100 production plant was inaugurated in May 1340 by the CEO of Fiat Company at the beginning of Abali Road in Tehran.
A year later, in 1341, the company began assembling British Land Rover cars in Iran. The assembly of this car in Iran was well received by the Ministries of Water, Electricity and Health, and most of these cars were used in the public sector of Iran.
In October of that year, two Mashhad brothers, Ahmad and Mohammad Khayami, founded Iran National Company to produce buses. They bought land on a special road in Karaj at a price of 10 rials per meter and started building a factory.
At the end of 1342, this company started the production of buses. Khayami imported the chassis and engine of the bus from Germany and mounted the room made by Iran National on it. The plant initially produced an OP bus per week.
Simultaneously with the establishment of Iran National Company in Iran, Kion Sang Bicycle Instrumentation Company in South Korea started car manufacturing. The company changed its name to Kia and launched its first product, a three-wheeled pickup truck belonging to Mazda.
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