Local Auto Parts Makers to Join Global Supply Chain

Local Auto Parts Makers to Join Global Supply Chain   Local Auto Parts Makers to Join Global Supply Chain

To lay out the details of its long-term plans for Iran, Renault Pars held a three-day event in Paris on June 1-3 for its Iranian partner companies.

To become familiar with Renault's technical offerings, 25 auto parts manufacturing entities, which included 40 auto parts firms, attended the event held at the company's technical HQ in Paris.

According to a company press release, the event aimed to expand cooperation with Iranian auto parts groups and to prepare them for international markets.    

A key speaker at the event was Veronique Sarlat Depotte, deputy managing director of Renault-Nissan Purchasing Organization. She said the occasion, which allowed for investigating further collaboration opportunities with Iranian parts makers, was a positive one.

She listed the qualities local parts makers and suppliers must possess to join Renault-Nissan's international supply chain, especially as Iran's parts makers are likely to see a growth in their business through the French company.   

According to Depotte, major issues include management of financial resources, quality of auto parts, competitive pricing and the potential to develop products and engineering projects as well as deliver parts in a timely manner.

"Among the factors mentioned, quality and after-sales services are of utmost importance," she said.

The Renault official explained that auto parts makers, which enter Renault's supply chain, are taken on for a period of 15 to 20 years.

During the first three years, the company focuses on product development and the next five to seven years are dedicated to product life cycle. Finally, auto parts supplies and after-sales services are offered in the remaining 10 years.

"This highlights the need for the two sides to have a clear understanding of one another's expectations," she said.

The official noted that Iranian suppliers have reasonably acceptable conditions, however, "they must make an effort to improve auto parts quality and meet European standards".

Alongside improving quality, she said, parts must be supplied at a competitive price as "Renault's main goal is to design and manufacture high-quality cars that are affordable and can be purchased by the maximum number of consumers".

Depotte further said Renault-Nissan's specialized technical teams can help Iranian auto parts makers optimize production costs.         

Payman Kargar, CEO of Renault Pars and vice president of Renault Region Africa-Middle East-Iran-India, also spoke at the event. He stressed that Renault is committed to carrying out its responsibilities in Iran and plans to become its strategic business partner in the realm of auto manufacturing.

Kargar detailed the company's mid-term plans for Iran, noting that Renault's activities are based on five principles. These include joint direct investment with Iranian partners, creating automobile platforms, local manufacturing, transferring technologies and knowhow, as well as production of high quality vehicles.

"Instead of setting up a new manufacturing plant," he said, "Renault is focused on making the most of the potentials that are available. By investing in engineering technologies and creating synergies, products can be manufactured and launched faster."

The CEO of Renault Pars noted that some 80% of every Renault car made in Iran should be produced locally.

"This creates great responsibility for Iranian auto parts manufacturers as well as Renault," he said.

  Renault's Future Direction in Iran

Kargar said his company's cooperation will expand in future and announced that Renault plans to introduce two new models in Iran. These are Renault Symbol and Renault Kwid which, if manufactured in Iran, will both be sold on Iran's market and exported to the regional markets.

Other new models to be made include Sandero Stepway that will be made in collaboration with Pars Khodro and a face-lifted edition of Tondar 90 (L90, Dacia-Logan) that will be made at Iran Khodro Company as well as the latest version of Duster.

In light of increased production at these plants and to enhance mutual trust, Kargar said Iranian auto parts makers must be prepared to deliver the needed parts on time.

To do so, parts makers must hire human resources and obtain supplies. Meeting the rise in demand can be achieved through precise planning.

Kargar also said that as part of the new chapter of activities in Iran, Renault plans to improve after-sales and customer services, which are currently far from Renault's ideal standards.

The three-day event also featured an auto parts exhibition and a tour of the company's manufacturing plants and showrooms in Paris.