Nearly $2b is required for domestic manufacturing of auto parts

May 6, 2020 - 13:51

TEHRAN- Iran’s auto parts manufacturers need nearly $2 billion to manufacture the auto parts required for making 1.2 million vehicles in the country during the current Iranian calendar year (ends on March 2021), Iranian Auto Parts Makers Association’s Secretary Maziar Beyglou announced.

Speaking with IRNA on Wednesday, Beyglou said that the biggest problem that domestic auto parts manufacturers are currently facing is securing foreign currency.

Since the year start, no foreign currency has been provided for the auto parts manufacturers and they have been seriously facing problems for the shipments of their required raw materials, he complained.

It is while through many endeavors and taking steps in the path of self-reliance in auto parts manufacturing and omitting CKD (completely knocked-down) process in domestic auto industry, today, this industry needs the lowest amount of foreign currency in its history, he added.

“This least requirement of the auto parts manufacturers is expected to be supplied by Central Bank of Iran (CBI), and if the CBI cannot provide it, they should give us the permit so that we can secure foreign currency directly from the exporters (who should offer their earned foreign currency in a system named NIMA to provide required foreign currency for the importers of necessary commodities)”, he further noted.

In January, Beyglou announced that Iran has achieved 80 percent self-sufficiency in the manufacturing of auto parts.

He expressed hope that self-reliance in this sector reaches 90 percent through domestic production of required raw materials.

Domestic parts manufacturers are able to play a key role in creating a boom in the country's manufacturing and employment sectors, in addition to playing their leading role as the auto industry’s intermediates, Beyglou said.

Mentioning the industry ministry’s strategies for promoting domestic production,  he said: “Following the current policies, we will see the production of a number of new vehicles from domestic automakers in the coming years.”

Last May, 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.