The implementation of the plan for the mandatory registration of IDs for auto spare parts has eliminated most of the unlicensed producers and led to a 50% increase in the quality of spare parts.
The ID registration plan was also effective in increasing the competitiveness and liquidity of official spare parts manufacturers, according to the head of the Spare Parts Committee of the Association of Homogeneous Propulsion Industries and Component Manufacturers.
“Currently, [however,] of the 3,000 spare parts manufacturers, only 55 are selling products with a tracking code,” Ahmadreza Ranaei was also quoted as saying by Khabar Khodro.
“The implementation of the spare parts ID plan and tracking code has been effective in eliminating 80% of unlicensed producers from the domestic market,” he added.
Nevertheless, the official did not elaborate on the plan’s impact on smuggled automotive parts that earlier swarmed the domestic market.
Asked whether the plan has helped sustain the ban on the import of counterparts available in the domestic market, he said the import of matching parts has declined because of the tight foreign currency situation and not due to this plan.
“With the ID registration for spare parts and the removal of unlicensed producers, official manufacturers are no longer under pressure and can sell auto parts at a more convenient pace,” he said.
Ranaei noted that the plan has improved the quality of 55 spare parts by about 50%.
According to another official, imported and smuggled brake pads meet 30-40% of domestic needs.
While domestic production can supply the market demand for brake pads, imported and smuggled parts constitute 30-40% of the domestic market, said secretary of Iran’s Brake and Clutch Manufacturers Association.
“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.
Masoud Hassanpour added that the domestic brake pad production capacity exceeds 100,000 tons.
Self-Sufficiency in Car Batteries
Iran has reached self-sufficiency in the production of car batteries and is now focusing on exports.
Annually, 15 million car batteries are being produced in Iran, of which 4 million are exported, according to the head of the Battery Manufacturers and Sellers and Specialized Automotive Electric Services Association.
“In recent years, effective measures have been taken to produce 100% of the needed car batteries domestically and at present, we not only meet domestic demand, but are exporting more than 4 million batteries to neighboring countries annually,” Hosseinali Akbari also told IRIB News.
Currently, 10 million are used by the active car fleet and 1 million by car production lines, he added.
Akbari noted that at the beginning of the current fiscal year (March 21), car battery prices increased by 3.5% in the wholesale sector while prices remained stable in the retail sector.
“Recently, a factory increased prices by 11% without permission and we are following up this issue to bring them to the previous level because the prices of raw materials and lead have declined and there is no need to increase the price,” he said.
According to the Iran Chamber of Guilds, it is mandatory to include the tracking code and ID of car spare parts and batteries in their invoices, the chamber’s news portal announced.
This is aimed at making it difficult for profiteers to sell unlicensed or smuggled batteries or other spare parts, as illegal products will not receive these codes.
The announcement of the Iran Chamber of Guilds was as follows: All guilds in the field of automotive spare parts are hereby informed that in order to combat the supply of counterfeit and smuggled goods, manufacturers and distributors, as well as wholesalers and retailers in real and virtual stores, are required to include tracking codes and product IDs in their official invoices.
Car Parts Producers Vying for Export to Russia
Domestic component manufacturers are exporting car parts to Russian companies and their main goal is to bolster 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 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 favorable 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.
“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,” he 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 higher number of participants in this year’s exhibition.
