Bavaria’s industrial association VBW says the recent lifting of sanctions against Tehran presents an opportunity for the region’s automotive supplier sector, which has signed a deal with Iran’s Auto Parts Manufacturers body.
In November last year, VBW—Vereinigung der Bayerischen Wirtschaft—opened a liaison office in Tehran to provide Bavarian companies with advice on accessing the labor market and assisting with contacts to potential partners and political decision-makers, Just Auto reported.
News of Bavarian component interest in Iran comes hot on the heels of automotive supplier delegations led by FIEV in France and FKG in Sweden, eager to take advantage of a rapidly thawing political climate after decades of punitive sanctions against Tehran, which have seen an aging car sector bereft of quality parts.
“We see particularly interesting opportunities within the automotive industry,” VBW CEO Bertram Brossardt told Just Auto from Munich.
“In connection with a recent visit by the Tehran Chamber of Commerce, Industries, Mines and Agriculture to Munich on our invitation, VBW signed a memorandum of understanding with the Iranian Auto Parts Manufacturers Association”.
Brossardt said this highlights the intent of both sides for establishing cooperation between Bavarian and Iranian companies in the automotive supply industry and trade relations are sure to pick up pace.
The VBW chief noted Bavaria exported €207 million ($228 million) of goods to Iran last year, but the figure makes up a fractionally small 0.1% of the region’s total, illustrating the potential for a major uptick in trade between Tehran and Munich.
Brossardt further said that after years of declining exports, the gradual lifting of sanctions against Iran opens up new opportunities for the revival of traditionally good business relations between Bavaria and Iran.
“Iranian plans for economic development and foreign investment match very well with the profile of Bavarian industry,” he said.
“Due to the long period of isolation, Iran is eager to catch up in almost all sectors. Bavarian companies are able to deliver exactly what the Iranian market needs. Particular potential exists in the automotive sector.”
Bavaria is the richest state of Germany with a booming business sector, rising exports and unemployment at a 20-year low.
Its new VBW liaison office in Tehran will provide services such as market development, advice and assistance with accessing the labor market, generating contacts with potential partners and customers and project support through to the conclusion of contracts.
It will advise on office services and renting options for short-term stays or new headquarters, access to policymakers and organization of delegation trips and seminars.
The Bavarian Education Institute will offer qualification programs and management training in Iran, among other services.
