Auto Parts Localization Curbs Capital Flight by Over $130m

Major Iranian automaker Iran Khodro (IKCO) has slashed capital flight by $138 million through the localization of vehicle parts in the first eight months of the current Iranian year (March 20–Nov. 20).
Farshad Moqimi, CEO of the company, said this has been attained with the support of industrial units affiliated with the Defense Ministry and knowledge-based companies, IRIB News Agency reported.
“Several projects have been launched to gradually slash capital flight caused by auto parts imports, which amount can reach $248 million per year,” he added.
Moqimi noted that the projects are curbing production costs and reducing IKCO’s annual import bill by $180 million while the company used to spend close to $360 million on the import of parts every year.
He called on the banks to extend support to domestic parts makers for upgrading their machinery and asked relevant authorities to cut their tax rates.
“Encouraging local parts makers for manufacturing high-tech imported components are on IKCO’s agenda,” he said.