A member of coordination council at Iran Automobile Parts Manufacturer Association (IAPMA) told ILNA on Tuesday that the high amount of cheap car parts imported from China has left no hope for domestic manufacturers to stand a chance in a fair competition.
“The very low tariff of import for auto parts along with the high amount of the parts being manufactured in China under the name of Iran are the two major issues affecting the market that does not leave a room for Iranian manufacturers to compete,” Najafi said.
The price of domestic car parts has seen a significant rise due to an increase in interest rate and a reduction in the amounts of loans accompanied by the added value tax of 8%. “This may seem economical at the moment (to import parts from China) but will cause economic loss in the long term”, Najafi warned.
In response to a question on whether a rise in import tariff could lead to smuggling, Najafi said, “in my opinion, smuggling and tariff are two completely separate issues and the change in the latter does not affect the first.”
He further added lack of transparency in economic activities would results in an inclination towards smuggling and illegal trades.
