Economy, Auto

Contraband Auto Parts Harming Local Industry

Contraband Auto Parts Harming Local IndustryContraband Auto Parts Harming Local Industry

Nearly 50% of the Iranian auto parts manufacturing units have been shut down because contrabands have flooded the market, said the secretary of Iranian Auto Parts Manufacturers Association.

Arash Mohebbinejad added that 17 trillion rials ($486 million) of their debts have yet to be repaid by car manufacturers.

According to Mohebbinejad, the amount is expected to be repaid in the coming weeks, Tasnim News Agency reported.

Some of the debts owed by small auto parts manufacturing firms have been partly repaid, though larger auto parts manufacturers are still having trouble collecting their dues.

Mohebbinejad said the total amount owed by auto manufacturers to the parts makers was 50 trillion rials ($1.5 billion).

He added that 2 trillion rials ($57 million) of the amount were repaid and an extra 4 trillion rials ($114 million) have been repaid in the past few weeks.

"We hope auto parts makers will not suffer the same situation with new auto contracts," he said.

Highlighting the fact that smuggled auto parts are posing one of the main challenges, the official said contraband auto parts have severely harmed local production units.

Mohebbinejad noted that a special committee, including members from the police force, Intelligence Ministry, the parliament and the government, is being formed to address the issue.

"With the help of other sectors, the government must take an effective decision in this regard," he said.