TEHRAN (Iran News) Mohammadreza Najafi-Manesh, chairman of the association, said that although the sector had already been grappling with challenges, the recent 12-day conflict in the region dealt a devastating blow to the industry. “For the first time in 13 years, production units have been forced into large-scale layoffs,” he noted. A recent survey of 60 auto parts companies in Tehran showed that around 80% have either reduced their workforce or are on the verge of doing so.

Industry leaders cited a cascade of issues: returned checks from automakers, delayed payments, declining market trust, a surge in middlemen, and persistent liquidity shortages. Najafi-Manesh urged policymakers to recognize the urgency of the situation and communicate it to decision-makers.

Arash Mohebbi-Nejad, the association’s secretary, painted an even grimmer picture. He explained that the industry suffers from chronic underinvestment, outdated technology, and a lack of stable financing. While Iran’s automakers are officially capable of producing 1.7 million vehicles annually, parts manufacturers’ output is only sufficient for around 200,000 units. Financial statements show Iran’s two largest automakers have accumulated losses of about 600 trillion tomans (approximately $12 billion) due largely to unpaid debts across the supply chain.

Medi Matloubzadeh, another board member, stressed that the crisis is no longer about increasing domestic production but about saving the industry from collapse. He highlighted a stark gap of 600 trillion tomans between factory prices and market prices of vehicles, which he attributed to restrictive government pricing policies. As a result, speculation has flourished, driving up losses for both consumers and manufacturers.

Matloubzadeh predicted that by late September, up to 400,000 out of roughly 550,000 workers in the auto and parts sectors could lose their jobs. This would force the social security system to pay significant unemployment benefits while its revenues drop due to mass layoffs. He also criticized plans to import second-hand vehicles, warning they lack standardized global pricing and would worsen parts shortages.

Faramarz Tayebi, another association member, described the liquidity crisis as the industry’s “biggest threat.” Automakers reportedly owe parts makers over 150 trillion tomans, of which 55 trillion tomans in matured receivables remain unpaid. Returned checks have also undermined producers’ access to banking credit, paralyzing cash flow throughout the sector.

Babak Karimkhan, the association’s vice chairman, emphasized that the industry is battling multiple shocks: regional conflict, reduced purchasing power, and rising consumer sensitivity toward liquid assets. Falling demand and financial uncertainty have pushed many firms to slash production or suspend operations entirely.

Karimkhan warned that if no immediate measures are taken, the domino effect could extend to dozens of related industries, causing widespread economic damage. “Maintaining liquidity and restoring market confidence are critical for survival,” he said.

In response to a journalist’s question about why the sector consistently protests rising costs, Najafi-Manesh argued that price hikes stem from broader economic conditions like excessive liquidity and national budget structures. “Our products have become more expensive for a reason, but the cause lies elsewhere—not with manufacturers,” he concluded.

The association called on the government to act urgently to prevent a collapse that could deeply impact Iran’s economy and society.

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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.

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Ruhollah Latifi also put the country’s auto part imports at $207 million in the first four months of the current year (March 21-August 22).

As announced by the IRICA Head Mehdi Mir-Ashrafi, Iran has imported 12.5 million tons of non-oil commodities worth $14.5 billion in the first four months of the present year, with 32 percent growth in value and five percent rise in weight year on year.

He said that the basic goods accounted for 9.4 million tons of the imported items.

Mir-Ashrafi named cellphones, livestock corn, sunflower oil, barley, meal, wheat, soybeans, sugar and rice as the main imported commodities.

He has also announced that Iran’s non-oil import was 34.4 million tons worth $38.5 billion in the past year, and mentioned corn, cellphone, rice, oil meal and oil seeds, wheat, and raw oil as the major imported items.

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TEHRAN (Iran News) – Secretary of Iranian Auto Parts Makers Association Maziar Beyglou expressed hope that self-reliance in the manufacturing of auto parts would reach 90 percent through domestic production of required raw materials.

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Maziar Beyglou noted that if the current production trend continues, “we will expect an increase in the automotive industry’s production next year.”

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

Domestic parts suppliers are able to play a key role in creating a boom in the country’s manufacturing and employment industries, in addition to playing their leading role as the auto industry’s intermediates, he stressed.

Beyglou pointed to relying on foreign sources, as the main reason for the decline in the country’s car production after the re-imposition of the U.S. sanctions, saying “With the new policies adopted, if we provide funding for the country’s auto parts industry, we will definitely witness the production of high-quality and up-to-date vehicles by domestic manufacturers.”

In mid-May 2019, the 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.

Also in December 2019, the Specialized Manufactures of Auto Parts Association announced that Iranian carmakers have prepared some incentive packages to encourage investment making by the auto parts manufacturers.

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

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According to the official, the country’s total car output reached 950,000 last year.

Mofidi also mentioned establishment of a roundtable for domestic auto parts manufacturers at the ministry’s Automotive and Transportation Industries Office, saying that “So far nearly 7.4 trillion rials (about $177 million) worth of deals have been signed with domestic manufacturers in this office, which have saved the country over €85 million.”

According to the industry ministry, given the number of vehicles that are anticipated to be manufactured in the country during the current calendar year, 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.

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

The ministry has also unveiled a 10-section plan on early February for improving the status of car makers, in which the two major car makers of the country have been ordered to support auto part manufacturers.

Following the orders of Industry Ministry, domestic car makers have started a research movement in recent months titled “Domestic Manufacturing of Imported Parts”.

The movement is aimed at creating the condition and opportunity for cooperation among domestic manufacturers, knowledge-based companies and startups.

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