Khodrocar Reports;
Does the Auto Part Manufacturer Have a Share in Recent Foreign Contracts?
Automotive contracts are signed, one after another and it seems that auto part manufacturers will become bold but some auto industry experts say that the participation of auto part manufacturers are depending to the automakers.
Khodrocar – as the Iranian automakers signed contracts with foreign counterparts, it is expected to see more participation of auto part manufacturers in joint venture products. Trade promotion organization announced the 40 percent share of auto parts makers in joint venture contracts several times.
In the recent months and after some contracts finalized, the 40 percent share of auto parts makers announced time to time. Actually, it was said that the share of auto parts makers is one of the main conditions.
Right now, the number of joint venture contracts is increasing and they need after sale services and spare parts, so the role of local auto parts makers is bolder than before. Manufacturers believe that a good plan will help them in this way.
"Right now, the number of automotive contracts is acceptable, but we have to consider lots of things about the capability of auto parts makers.” Reza Rezaei, the head of Iran’s auto parts manufacturer association (IAPMA), said to Khodrocar reporter.
"Rate of production, economic efficiency and final prices are the main issues in this field and none of them is related to the auto parts makers. However, increasing in labor wage, exchange rate fluctuations and increasing in steel price has effects on this industry.” He said.
"naturally, producing 100 thousand cars annually will help the auto parts makers have bolder participation. local auto parts makers can have a better role in joint venture contracts if they can participate more in local products.” Rezaei said.
Khodrocar Reporter: Negar MirKarimi
Khodrocar Translator: Amin Zamani
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