Iran: Defense Ministry Strengthening Collaborations With Automakers

Iran's Defense Ministry has signed a deal with local car manufacturing company SAIPA to curb the auto sector's reliance on foreign parts.
Iranian car companies depend on auto parts imports—especially key electronics—for producing vehicles. Following the imposition of harsh US sanctions against Tehran, the local firms’ ties to the global supply chain were disrupted and parts imports began to trickle.
During a visit to the automaker's production lines and research center on Wednesday, Defense Minister Amir Hatami signed an agreement with SAIPA to bolster collaboration in research and development, design, technical monitoring, safety standards and localization of parts, Tasnim News Agency reported.
Seyyed Javad Soleimani, CEO of SAIPA, said, “With Defense Ministry’s help, domestic substitutes for 35 key auto parts are to be produced in Iran to curb the industry’s reliance on the global supply chain.”