While domestic manufacturers are producing high quality and cost-effective car parts, such as brake pads, some companies are importing components that have an Iranian counterpart and disrupting the domestic market, according to the secretary of Iran's Brake and Clutch Manufacturers Association.
“According to the laws and regulations, the import of brake pads that have domestic counterparts is considered a violation, but unfortunately, many are importing this part through deceptive means," Masoud Hassanpour was also quoted as saying by Donyaye Khodro.
The presence of brake pad manufacturers and distributors in the 17th International Exhibition of Automotive Parts held in Tehran on Oct. 31-Nov. 3 was striking, given their high capacity and significant investment.
However, the profiteering approach and lack of attention to national interests have resulted in the excessive import of car parts, despite the production of competitive domestic counterparts.
Hassanpour explained that commercial companies are registering orders and importing brake pads illegally, but they are doing this at the cost of aggravating Iranian unemployment.
"Private sector producers have invested in this industry and they expect the government to support them and stop importers from harming this industry for the sake of gaining more profit,” he said.
“The Iranian brake pad can not only meet domestic demand in terms of quantity and quality, but can also compete with foreign brands by initiating export."
The official noted that free trade zones were created to promote export, but they are posing a threat to domestic production.
“Therefore, imports should be controlled in free trade zones and complete products should not be imported as semi-finished kits, or raw materials, which undermine the interests of domestic producers,” he said.
Hassanpour complained that in this year’s parts exhibition, imported parts were advertised by some commercial companies, which have domestic equivalents.
“In order to support domestic production, we request the relevant authorities to stop the advertisement and sale of imported goods that have domestic counterparts to increase the motivation for investment in this sector,” he said.
Car Parts Producers Focus on Increasing Export to Russia
Domestic component manufacturers are exporting car parts to Russian companies and their main goal is to boost this trend, according to the secretary of the Association of Automobile Parts and Assembly Manufacturers.
Maziar Beyglou added that domestic auto parts producers and knowledge-based companies met with warm reception in the 17th International Exhibition of Automotive Parts, Khabar Khodro reported.
Announcing the full readiness of domestic component manufacturers to enter the Russian market, Beyglou noted that negotiations are underway with Russian car and automotive parts manufacturing companies, while contracts have also been concluded in this regard.
“This year's exhibition was the first such event held without restrictions after two years of the Covid-19 pandemic,” he said.
The exhibition was aimed at achieving self-sufficiency, supporting the manufacture of new cars and increasing the number of participants.
The secretary of the Association of Automobile Parts and Assembly Manufacturers said this year's exhibition successfully displayed the capabilities of domestic car manufacturers and parts makers, which generated very good feedbacks.
He pointed to the signing of a memorandum of understanding between the association and the Iran Standard & Quality Inspection Company, and the arrangement of several technological events in coordination with car manufacturers as constructive developments.
“These events had a very positive effect on the atmosphere of the exhibition. On the first day, the exhibition was mostly visited by officials, and on the second day, we had a very good public reception,” he said.
“If the goals and motivations outlined on the first day [of the exhibition] are pursued, good results will be obtained. Domestic knowledge-based companies active in the parts industry participated in this year's exhibition for the first time.”
Commenting on the design, quality and variety of products and parts displayed in the exhibition, especially for export and for competing with imported parts, the official said, “The possibility of domestically manufactured parts competing with imported parts was already there, but in recent years, because of the rising exchange rates and the implementation of supportive policies by the Ministry of Industries, Mining and Trade, including the fight against smuggled and counterfeit components, a more suitable situation has been created for the export of car parts.”
Beyglou noted that this issue was one of the reasons for the surge in the number of participants attending this year's exhibition.
