TEHRAN (Iran News) – Secretary of Iranian Auto Parts Manufacturers Association says Iran has good potentials to increase its auto parts exports and earn up to $2b annually.
Speaking to ILNA, Maziar Biglou said that if the problem of raw material price and pricing of cars are resolved, Iran can increase its auto parts exports considerably in four years and to earn $2b and the figure is even more than the country’s needs for importing cars.
Touching upon Majlis efforts to set conditions for imports of vehicle and export of auto parts is one of the conditions, Biglou said that auto-parts manufactured in the country have potentially good capability for exports and currently despite sanctions, Iran exports some auto-parts but export of auto-parts has always faced its own problems.
He blamed the high price of the raw material as one of the major problems because the domestic produced raw material is more expensive than imported materials and it will naturally affect the final cost.
Biglou noted that if the country wants to have competitive advantage in the export market, it should resolve this problem for example the price of the imported steel is very cheaper than the domestic produced steel which shows incorrect policies in the field of providing raw materials for the industries.
On the impacts of sanctions, he said that till 10 to 15 years ago when the country had more international communication, it was very effective on the exports and those companies which provided Renault Company with the parts had good exports to overseas companies and sanctions led to decline in earning forex through exports.
Biglou went on to say that unfortunately today the country’s products are not required by the international markets because some cars like Peugeot 207 that Iran provided its parts is no out of consumption market in the world.
He said to increase the exports of the auto-parts, the association has raised two major suggestions that one of them is to correct the pricing of cars because most of the problems have been emerged because of this type of pricing and in case it is corrected, the auto-parts can return to its good days through increasing production and producing even the new parts.
He added that the second suggestion is to correct the pricing and distribution of the raw materials, adding that it can boost the country’s competitive advantage in the international market by because 80 percent of the required raw materials for manufacturing cars exist in the country and we should not miss this competitive advantage.
Biglou reiterated that if these two problems are resolved, then the country can earn some $2b annually through exports of auto-parts exports in four years.