Economy, Domestic Economy
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Int’l Cooperation Key to Auto Industry Success

Int’l Cooperation Key to Auto Industry SuccessInt’l Cooperation Key to Auto Industry Success

International collaboration is the key to success for the auto industry. With this in mind, Iranian car makers encourage foreign partners to become actively engaged in Iran’s car industry, a member of auto policy making council told IRNA.

Mutual cooperation between Iranian and foreign auto makers can even extend to auto parts manufacturing, Arash Mohebi-nezhad, said adding “international cooperation should not be limited to technology transfer as identifying the sales market is the most important bottleneck”. He said he believed that joint ventures with foreign partners provide access to their markets as well.

He highlighted Iran’s abundant natural resources, highly educated population and the low cost of production, adding “the finished cost of auto parts production can be much lower than that in other countries through joint ventures with foreign brands”.

He regretted that the auto industry has failed to make use of its true potential due to various issues such as sanctions, liquidity and high banking interest rates and said “before the western sanctions, Iran’s auto industry succeeded in positioning itself in the global market; nevertheless, the industry is yet to cooperate with top auto makers around the world”.

He rejected the idea that a lack of technical knowledge in design and manufacturing is the main source of problem for local auto makers, and said “the knowledge base is available in the country and local manufacturers are able to design cars, however, the pace of R-&-D in other countries is much faster”.

Mohebi-nezhad called on Iranian auto makers to upgrade their knowledge in design and manufacturing by working with foreign partners. According to him “Due to the absence of serious competitors among neighboring countries, Iran’s auto sector reach extends to neighboring states giving foreign partners access to a large market”.

He called on the government to create a better environment for international cooperation in the auto industry and considered foreign investment facilitation through removing redundant regulations as an example of essential steps to this end.

In addition, he invited auto makers to consider certain provisions in their contracts with foreign partners, such as gaining commitment from the foreign side to export the cars and auto parts it produces in Iran.

Mohebi-nezhad welcomed the second international automobile conference which is to be held on Dec. 1 in Tehran and said “the conference is a unique opportunity to raise awareness about Iranian auto industry and help it find its true position”.

He hoped the conference provides a platform for Iranian auto makers to find foreign partners and reach tangible and positive results through negotiations.

Financialtribune.com