Three Important Factors for Improving the Automotive Industry
Consider that this year is has been named “Support for Iranian Goods”, it seems that the automotive industry will have prolific and laborious year. Now the question is that what kinds of support does this industry need?
Khodrocar – The government has always supported the automotive industry in a way that we can call it somehow "a governmental industry”. Some experts believes that in recent years, automotive industry has been a prominent example of supporting Iranian goods. An industry, which only has only two major manufacturers, which is completely depended to the government, and it just seems private.
On the other hand, some believe that the imported car market passed the domestic cars especially in the past five years.
* In the recent years, the Iran’s automotive industry was unable to compete with the global market even with the government supports. Is it able to reach the global standards just in one year? Is this industry able to improve the quality of its products and satisfy the customers?
Sahram Azadi, an automotive industry expert says in this regard: "Currently, the government needs to engage, support and develop the automotive industry. Three important factors exist for its development. One of them is increasing the quality and level of part manufacturing technology.”
He adds: "The part manufacturers must be a part of this support. The government should start building the necessary infrastructures and then increase the investments on this field.”
He explains: "In the past years, part manufacturing industry was faced a major financial loss and now it is unable to invest.”
This experts emphasizes: "Another important factor is government assistance to the development of domestic vehicles. The current vehicles are producing under the license of foreign carmakers. It means that they are the source of these technologies and now the government help this industry to upgrade its quality level, knowledge, technology and investment.”
He believes that the third important factor is external interactions and adds: "With technology exchange, we must increase the market competition.”
Azadi explains: "The current support of government from automotive industry is not enough it should be increased. For example, the imported car market tariff increments is not the way to support the domestic products. The government must use the knowledge based companies in order to increase the variety of domestic products.”
Since late last year, the government has taken measures to protect Iranian goods and seems to have more plans to support domestic vehicles. One of them, which the government implemented it in the beginning of this year is the prohibition and removal of entry of similar goods within the framework of the Bank guarantee facility.
Khodrocar Reporter: Negar MirKarimi
Khodrocar Translator: Maziyar Jafarieh