110 Companies at Isfahan Auto Part Expo

110 Companies at Isfahan  Auto Part Expo
110 Companies at Isfahan  Auto Part Expo

The 11th International Exhibition of Auto Parts commenced on Wednesday in the central city of Isfahan with 110 Iranian and international companies attending.

Auto part makers were mainly from the provinces of Tehran, Isfahan, West and East Azarbaijan, Khorasan Razavi and Hamedan. International participants came from South Korea, China, France, Germany, Italy, and India, Mehr News Agency reported.  

Customer satisfaction is testament to the fact that auto parts produced over the past two decades in Isfahan are of good quality, Ibrahim Ahmadi, head of Isfahan's Auto Part Makers Guild said at the opening ceremony.

Improving quality, however, will not be achieved overnight. "There are several different factors that need to improve for this to be realized, and interaction with international markets is of utmost importance," Ahmadi noted.  

Locally manufactured car parts can be exported and compete with international brands if better manufacturing conditions are provided, he further added.

Also present at the event was, Mohammad Mojiri, trade and commerce development deputy of Isfahan's Industry, Mine and Trade Organization.

Auto part exports have steadily increased in recent years which shows the enhanced quality of products, ISNA quoted the official as saying.  

He highlighted the fact that Iranian auto part makers must mainly focus on brand development if they plan on increasing exports. "Taking part in exhibitions will also inspire the auto part makers and help improve product quality."

Supporting the auto part industry is a must, Mojiri said while adding "officials need to walk the talk."

The official elaborated that obstacles hindering production need to be thoroughly assessed. Banking issues are one of the main problems the industry is grappling with.

He also said that if western sanctions imposed on Iran over its nuclear energy program are lifted, conditions will also improve for auto part makers.

Iran and the P5+1 (the five permanent members of the UN Security Council plus Germany) are negotiating to meet a self-imposed June-30 deadline to reach a final deal over Tehran's nuclear energy program.

Mohammad Bagher Rejal, chairman of the board of directors at Iran's Auto Part Makers Guild, noted that the exhibition provides an ideal opportunity for Iran to present its available capacity. It also plays a key role in presenting manufactured goods to domestic and international markets, he said.

The official said that most major carmakers claim that they do not owe auto part makers a penny while available data indicate they are in debt to auto part makers to the tune of 45 trillion rials ($1.3 billion at market exchange rate).

Auto news website Asre Khodro reported in mid May that Saipa, Iran's second largest carmaker, failed to pay its debt to auto parts manufacturers and is in arrears by over five months. Contracts signed between carmakers and auto part manufacturers stipulate that buyers must pay for parts within three months.

The auto part makers are finding it impossible to deal with the financial pressure. Parliament members however refuse to acknowledge that times are tough for auto part makers Rejal rued.