While domestic production can meet the market demand for brake pads, currently imported and smuggled parts constitute 30-40% of the domestic market, said secretary of Iran's Brake and Clutch Manufacturers Association.
Masoud Hassanpour added that the domestic brake pad production capacity exceeds 100,000 tons, Khabar Khodro reported.
“Domestic brake pad market’s demand is about 75,000 tons, which are met by domestic, imported and smuggled products, as well as products bought from border markets,” he said.
The official noted that in view of the domestic production capacity and export plans, the presence of imported and smuggled parts in the market is questionable.
“Since the market is aflush with imported brake pads, there is no demand for the domestic product. As there is no incentive, production has declined and it is lower than the domestic capacity. About 60-70% of domestic products and 30-40% [20,000-30,000 tons] of imported and smuggled goods meet the 75,000-ton demand of the Iranian market,” he said.
Hassanpour stated that it is possible to supply the market with good quality brake pads through domestic production, so the import of this product should be stopped.
“A high percentage of the domestic brake pads are high-quality products, but some manufacturers produce low-quality products to reduce the price. If the import order is not registered by the Ministry of Industries, Mining and Trade, the total market share will be supplied by domestic producers,” he said.
The official stressed that as per the rules, if a domestic product meets the market demand in quantitative terms, then the import of a foreign counterpart should not be allowed, but the import order registration is continuing in violation of the rules.
“The entire market share need not be allocated to domestic pad makers, as our goal is that 10% of the market share should belong to imported brake pads and not 30%, because the domestic production capability is higher than domestic consumption,” he said.
“If there were no sanctions, domestic producers would have entered the markets of neighboring countries. The sanctions have made it difficult to transfer money, therefore the export market for brake pads is limited.”
Hassanpour said Russia, Iraq and Azerbaijan are among the export destinations of brake pad manufacturers.
“Brake pad makers could undertake export with a volume of several thousand tons, but currently the export figure is insignificant,” 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 held in Tehran from Oct. 31 to Nov. 3, 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 exhibition 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.
