Given the public dissatisfaction with the quality of domestic cars, an automotive expert has outlined two strategies in case international sanctions are removed or stay put.
Siamak Moqtaderi also told Donyaye Khodro in an interview: “If we reach an agreement [over the Iran nuclear deal], we should expedite cooperation with all car manufacturers and technology companies. But if there is no agreement, we should select cars that suit people's needs and start production in cooperation with domestic parts manufacturers.”
Moqtaderi noted that if the sanctions continue, reverse engineering should increase, especially in the component manufacturing sector, so that the production of old cars is discontinued. He stressed that reverse engineering is the best option at present for Iran’s automobile industry.
In the past, policymakers announced numerous automotive plans that were either not implemented or abandoned halfway due to economic conditions.
Despite protracted talks to revive the Joint Comprehensive Plan of Action, the formal name of the nuclear deal that Iran signed with six world powers in 2015, which the US revoked in 2018 and reimposed sanctions, there are currently no signs of the agreement’s immediate revival.
Moqtaderi believed that if JCPOA is revived, foreign companies will enter the country's automotive market, but this time they shouldn’t allowed to leave at whim without bearing the economic consequences.
“As we could not catch up with the new technologies [in the field of car and component manufacturing], we need to cooperate with different global companies. Car production is an all-encompassing international activity, and no country can claim to produce zero to 100% of a car on its own,” he said.
"There is intense competition in the automobile industry, and the comparative advantage of each international company should be examined before using their resources. This is the best strategy for work internationally like the rest of the world.”
Referring to the likelihood of the prolongation of sanctions, the expert said, “If the sanctions continue, the best strategy is to select and produce cars suitable for Iran's market and economy. Our parts industry has the capability to undertake reverse engineering of modern cars, which means that we can replace old models that people are tired of in terms of appearance and quality with new products.”
Moqtaderi emphasized that in case sanctions stay put, a suitable production model should be adopted.
“It is necessary to consider customers' preferences and the country’s technological conditions for making the best choice. In the end, even if the current international conditions continue, we should not neglect to update our products to prevent the production of repetitive models for several years,” he said.
No Deadline for Car Imports
After the Ministry of Industries, Mining and Trade said it is “impossible” to specify a date for car imports, experts are wondering whether the ministry is serious about the issue.
While rumors have circulated about the ministry’s selection of French, Japanese and South Korean brands, as well as domestic import companies, market players and experts are cynical about any car import getting underway anytime soon.
Obstacles facing the implementation of import regulations are so daunting that the ministry’s spokesman said, “Apart from the Industries Ministry, many other institutions are also involved in the car import process, such as the Central Bank of Iran, the Islamic Republic of Iran Customs Administration and the Institute of Standards and Industrial Research of Iran, etc. Therefore, it is impossible to announce a precise date for car imports; we can only say that it’s a work in progress.”
Omid Qalibaf added that car imports need €1 billion and CBI is planning to provide it in a positive environment, implying that most likely it would be allocated.
Dariush Badie-Sabet, an automotive expert, stated that the promises of the previous government have made the country's market pessimistic about the Industries Ministry’s policies.
"These promises have been repeated by the current government, and the authorities boldly issue directives because no one is asking them to guarantee the fulfillment of those promises," he added.
Commenting on the complaints of some officials about the automotive industry’s performance, Badie-Sabet said, "Following these complaints, automotive managers were expected to seek help from economic experts to solve the crisis and at least find the root of the problem. But unfortunately, we have not witnessed any positive actions in companies to improve the quality of popular cars."
In fact, market players complain that the Industries Ministry did not seek their opinion regarding car import regulations.
Asked how important these complaints are, he said the Industries Ministry’s haste in solving the problems of the car industry and market, and increasing public satisfaction has made the stakeholders and experts disagree with car import regulations.
The expert emphasized that the ministry not only failed to solve the problems, but has also made market players and experts believe that the ban on car import was only lifted on paper.
Responding to the comments of some officials about negotiations held by importers with foreign companies, Badie-Sabet said, “Such news should be announced by representatives of companies and the Automobile Importers Association to the media and people to ensure its authenticity. The active presence of the association in a professional manner can prevent the presence of fake companies and the cost inflicted by them.”
Earlier, the Iranian Parliament had announced that the Minister of Industries, Mining and Trade Reza Fatemi-Amin will be impeached because of his poor performance in the automotive industry, as well as those related to steel, mines and market regulation.
