Mega Motor and SAIPA, the country’s second largest carmaker, plan to harmonize their activities to maximize their production and efficiency, the managing director of Mega Motor, one of the main Iranian parts suppliers, said.
The objectives and policies of Mega Motor were outlined by Mohammad Reza Sheikh-Attar in the first coordination meeting of automotive supply chain, a local automotive website Persian Khodro reported.
Established in 1993, Mega Motor is a subsidiary of SAIPA set up to indigenize auto parts production. The company produces engines, gearboxes, axles and other mechanical parts for SAIPA.
Sheikh-Attar said SAIPA aims to produce more than 1 million units of cars in the upcoming years and Mega Motor—as the main parts supplier of the company—will have a significant role in this scheme.
According to the official, joint venture companies will be in charge of parts production and Mega Motor will assemble the parts, noting that suppliers will be the main investors.
He compared SAIPA’s production rate in the first quarter of the current Iranian year (started March 20) with last year’s production in the same period. Noting a major jump, he partly credited his company for the growth.
Sheikh-Attar announced that the first model of the new series of SAIPA products, known as SP series, will be produced in two years. He said that in the first phase, 30,000 vehicles will be produced, which is expected to rise to 180,000 units in the second phase.
“Upholding a competitive approach and reforming Mega Motor’s financial structure are top issues on the company’s agenda,” he said.
According to reports, Renault has been planning to invest in or even purchase Mega Motor to produce engines for L90, Clio, Captur and Kwid models.
Speaking at the same event, SAIPA’s Deputy Director Nasser Akhoundi singled out coordination between different sectors of Iran’s auto industry as one of the key elements to boost the industry.
He also named strengthening parts manufacturers as one of the main financial goals of SAIPA.
In addition to SAIPA, Mega Motor supplies parts to several other automakers like Zamyad, Pars Khodro and Renault.
The company has also partnered with several international vehicle and parts manufacturers, including GMB Korea Corp., Renault, Punch Powertrain and Schaeffler Group.
