Huge Challenge for Small Auto Part Makers

Khodrocar – compare to automakers, part makers are struggling in different part of the auto industry. Supplying currency, supplying first materials with high prices, getting heavy debts from car makers who have not been paying off for a long time, are the problems putting  part makers in a shadow.

After the presence of Renault in Iran’s market everyone in auto industry was happy and they hope to see better days in future and part makers improve more. But now after Renault exits Iran’s market, what will happen to the specialized part makers for this brand in Iran?

"Certainly, the future will be hard without Renault. During the past years self-sufficiency was reaching to 60 percent and now after their exit, producing their products will stops. As a result, all people who invest in the products of Renault will suffer loss.” Farhad Beh Nia, Speaker of part makers association and expert of auto industry told khodrocar reporter.  

"It is hard to keep producing some parts and fulfilling the 10 years guarantee of Renault in Iran because some parts like, ABS brakes, air bags, central computer and etc are not made in Iran however we have the technology of them but most of its market belongs to the parent company and they are supplying these parts.” He added.

"Last time, automakers tried to supply needed parts from China but product’s quality decreased a lot and it means that part should be supplied from a proper supplier. Also, if we are going to be self-sufficient in producing some Renault products like L90, we have to invest properly in the auto part industry but with the current condition of currency rate and cost of first materials it seems impossible to produce Renault’s cars without its support.” He continued.

"However, we are not hearing anything from Renault itself but as the little companies are leaving in Iran we have to forget that Renault remain in Iran.” Beh Nia said. "Right now, we have to think about the future, first the best thing would be working on cars with high production rate which we have the bases of producing in Iran. It means that instead of producing Renault which we can’t produce 40 percent of it, we can focus on increasing the production rate of Samand, Rana, Dena, Pars and … .” He said.

"Renault exit is a breakdown for car makers and joint vendors, which according to the contract Renault will have to pay the damage. Among all these losses, the worst is the investments made to produce new Renault parts in Iran. But with Renault going all this remains unanswered.” He told Khodrocar reporter.

This isn’t the first time that sanctions are coming toward Iran. Apart from the deep wound that has been devastated by the hardships and losses that are now being taken by Renault and other international carriers in the new round of sanctions, this is a bite of a hole that is still not secured by the country's automotive industry. it seems Iran’s auto industry didn’t take lesson from the last period of sanctions.

Khodrocar Reporter: Mostafa Anisi

Khodrocar Translator: Amin Zamani