New incentives to be offered to auto parts manufacturers

December 30, 2019 - 17:38

TEHRAN- Iranian carmakers have prepared some incentive packages to encourage investment making by the auto parts manufacturers, according to the secretary of Specialized Manufactures of Auto Parts Association.

Arash Mohebinejad said that offering these incentives is in line with promotion of indigenizing the manufacturing of auto parts, IRNA reported.

Purchasing the domestically-made auto parts at the same price of the similar imported parts and making the purchase guarantee deals with the auto part manufacturers are some of these incentives, Mohebinejad stated.

In mid-May, Iranian Industry, Mining and Trade Minister Reza Rahmani issued a directive on “strengthening domestic manufacturing of imported auto parts”.

Addressing two of his deputies, Farshad Moqimi, deputy for industrial affairs, and Mohammad-Baqer Ali, the board chairman of Iran’s Industrial Development and Renovation Organization (IDRO), the minister put emphasis on using the highest potential of human resources for strengthening domestic manufacturing of auto parts which are currently imported to the country.

Highlighting the orders of the Supreme Leader of Islamic Revolution Ayatollah Seyed Ali Khamenei on supporting production in the current Iranian calendar year (began on March 21), which is named the year of “Pickup in Production” by the supreme leader, Rahmani stressed that cooperation among all car makers, auto part manufacturers, knowledge-based companies and enterprises is vital for strengthening domestic manufacturing of imported auto parts.

This movement should be all-out promoted to combat sanctions and also prevent from exit of foreign currency from the country, the minister noted.

He said the policy of domestic manufacturing of auto parts should be seriously followed up, and in this due the capable manufacturers should be seriously supported.

Given that 1.25 million vehicles are anticipated to be manufactured in the country during the current Iranian calendar year (ends on March 19, 2020), the part manufacturers will need 150 trillion rials of working capital (about $3.571 billion) for the purchase of raw materials and other required items.

MA/MA

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