Tires produced in the first quarter of the current fiscal year (March 21-June 21) have increased in terms of tonnage compared with the corresponding period of last year.
Domestic tire manufacturing companies produced 65,353 tons of tires, registering a 4% increase compared with the corresponding period of last year, IRNA reported.
A total of 6.14 million tires (including different kinds of bias and radial passenger tires, as well as pickup, bus, agriculture, road construction and industrial tires), were produced during the period.
By the end of the first quarter, 41,140 tons of passenger car tires (bias and radial) were produced, showing a 5% increase YOY and accounting for 63% of the tire manufacturers’ total output.
Statistics indicate that only 19 tons of bias passenger tires were produced during the period, down 99.95% compared with 41,121 tons in the same period of last year.
A total of 5,952 tons of pickup truck tires (bias and radial) were produced in Q1, indicating a 6% YOY growth.
The output of bias pickup truck tires declined by 13% YOY, while that of radial pickup truck tires increased by 108% compared with the corresponding period of last year.
A total of 12,506 tons of heavy-duty truck and bus tires were produced, registering a 3% increase YOY.
The production of bias tires for commercial trucks and buses declined by 10% year-on-year. This is while the output of radial tires for these vehicles grew by 13% YOY.
Statistics show a sharp decline in the share of bias tires in all fields, as they have lost favor due to the old technology used in their production.
A bias tire consists of multiple rubber plies overlapping each other at an angle of 30–45 degrees. This is while a radial tire has steel belts inclined at a significantly different angle than the 90-degree radial plies.
Due to the all-steel radial construction, the sidewall of a radial tire is more flexible compared to a bias tire. This means less rolling resistance, lower fuel consumption, more grip and greater ride comfort at higher speeds.
The output of agricultural tires reached 4,436 tons during the period, down 8% YOY, while that of construction and industrial tires hit 1,319 tons, registering a 47% growth YOY.
Bicycle and motorcycle tires hit 4,281 tons in Q1, marking a 3% decrease YOY. By including these tires, the weight of total domestic output reached 69,634 tons in the three months ending June 21.
The production of inner tubes reached 2,046 tons during the period, unchanged compared with the same period of last year.
Domestic tire manufacturers produced 1,673 tons of flaps, conveyor belts, hoses and other related products during the period.
Tire manufacture in Iran dates back to 65 years. Currently, 12 domestic tire companies are producing tires for passenger cars, trucks, buses, vans, construction and agricultural equipment, as well as bicycles, motorcycles and inner tubes for tires.
Official domestic tire producers produce 300,000 tons of tires annually, while the annual domestic need stands at 400,000-450,000 tons.
Domestic Auto Spare Parts Woes Expected to Worsen
The lack of automotive spare part imports due to the foreign currency crunch will create problems for customers, according to an auto spare part expert.
Navid Habibi also told the Persian automotive daily Donyaye Khodro that this issue will cause a shortage of parts in the coming months and customers would be compelled to buy them at a much higher rate.
The expert added that the spare parts market is facing various problems, including the difficulty of importing parts as the Central Bank of Iran does not allocate the required foreign exchange.
“Our foreign partners also accept the risk of sanctions in order to cooperate with Iran, but when it comes to the money transfer, the Iranian businessman is discredited for not keeping his word. The foreign company thinks that the Iranian businessman does not want to pay their money,” he said.
“The foreign exchange of individuals or those procured from other methods are not accepted. Unfortunately, last year, CBI did not allocate foreign currency for import.”
When such problems disturb the supply of parts, the government will face unsurmountable problems.
The Ministry of Industries, Mining and Trade’s new Product ID Registration Plan was aimed at combating smuggled or counterfeit products, as the product ID identifies the manufacturer.
Habibi said the implementation of the plan has forced a number of dealers to leave the market, but when we have a shortage of goods, they are supplied through different ways, including smuggling.
“Therefore, smugglers, who met a part of the market demand, have been eliminated from this market. The legal merchants are also facing problems due to the lack of forex and some of them will be sidelined if the problems are not solved. This issue will disturb the supply of parts,” he added.
The expert explained that government obstacles would lead to a shortage of parts and price hike.
“The shortage of consumable products is eased faster than the so-called durable parts, the supply of which requires higher liquidity. For instance, when the door of a foreign car is not imported for whatever reason, it is not possible to supply it easily and this car will be grounded for six to seven months,” he said.
Habibi noted that even if a part is imported by a legal agency, it takes a few months to reach the customer.
Therefore, durable parts have decreased in the market and their distribution is facing problems.
“If this problem is not solved in the next few months, we will face challenges in even supplying consumable parts such as filters. This means the customer would be forced to purchase these parts at a higher price,” he said.
