Iran’s automotive industry is going to be challanged?

Khodrocar – Amirhassan Kakaei, automotive industry expert mentioned that Iran’s car industry had a significant progress after JCPOA and said: "Iran has a large car market and it can affect the global car market as well.”

He said that after JCPOA, the government took advantage of Iran’s car market capacity and made the foreign companies to sign contract with Iran and added: "Our automotive industry is doing very well and it is getting closer to the global car market every day. The part manufacturers also can join global markets.”

He explained: Of course, Iran's auto and part manufacturing industry has been struggling with tensions in recent years, which has weakened some products. Investment opportunities are provided according to the needs of this industry, and if the foreign part manufacturers enter Iran’s market, these two industries will have a close competition with each other.

According to him, this possibility will be provided at a time when issues related to the entry and exit of foreign currency and banking issues of Iran will be resolved and then the correct management of auto and part manufacturing industries will provide the first steps of improvements.

He told Khodrocar in response to the question that if all contracts between Iranian and foreign companies is successful, will this competitive situation between domestic and foreign car makers and part manufacturers is created: At the moment, with these contracts, foreign auto parts will come to Iran and maybe the domestic part manufacturers will be encouraged to start cooperating with foreign companies.

This automotive industry expert added: These contracts have their positive effects. One of them is the improvement of the quality level of domestic automakers. Another one is the encouragement of domestic manufacturers and the improvement of the quality of their products.

Kakaei explained: Of course these contracts will have different challenges; For example, growth opportunities may be provided for one or two auto part manufacturer companies and the other companies may be left behind. But this is also solvable with a good management.

Khodrocar reporter: Negar Mirkarimi

Khodrocar translator: Maziyar Jafarieh