Economy, Auto

Vehicle Depreciation Linked to Poor Quality Auto Parts

Vehicle Depreciation Linked to Poor Quality Auto PartsVehicle Depreciation Linked to Poor Quality Auto Parts

The poor performance of auto part makers in the past years has caused a sharp decline in the quality of several car models that were once reliable, sturdy and easy to maintain, said an automotive expert.

According to Farbod Zaveh, auto part makers and the low quality of auto parts have a central role in vehicle depreciation, Eghtesad News reported.

“Vehicle depreciation is in direct relation with the quality of the auto parts used. The better the auto part quality the longer a vehicle’s life cycle,” he said.

He added that producing vehicles of low quality results in loss for customers as well as national resources.    

A customer who owns a car of poor quality will end up spending extra on spare parts in the years that follow. Thus out phasing such cars would result in saving billions of dollars in the economy. The expert also recommended phasing out dilapidated vehicles.

Once a car is imported, “the needed spare parts will continue to enter the country for years to come.”

Therefore producing low quality cars will result in the need for more auto parts putting a burden on foreign exchange.

The official added that there are several methods that could help check vehicle depreciation.  

“These include changing the designs of cars and revamping production cycles.”

Given the current plight of Iran’s auto market, the best way to go about this issue would be to phase out older cars altogether and introduce new models, he said.

He added that the vehicles produced in Iran are mostly old models. Thus it would be a waste to try and remodel existing designs, revamp the production cycles or even optimize the machinery.

Investing in new models, on the other hand, could result in product effectiveness.

According to Zaveh forging partnerships with foreign carmakers could help improve the condition of the auto sector to a great extent, “so long as the new partners produce cars of acceptable quality.”