November 28, 2022
Powerful presence and globalization of local parts manufacturer takes 5- year.
2018/02/26 | 16:53
Chairman of Parts Manufactures of Iran:

Powerful presence and globalization of local parts manufacturer takes 5- year.

We predict in 5 to 8 years long, Iranian parts manufacturers will have a suitable and good percent of exports and we can observe their more powerful and global presence.

The chain of production, supply of parts and raw materials which can lead to flourishing or surpassing a generative industry. Iran Khodro industry has suitable advantages such as cheap raw materials and energy, and qualified parts manufactures in the country; although, it still has a long way ahead to be better.
The present situation of supply chain in parts manufacturing industry is a subject we discussed with Maziar Beyglou, Chairman of Automotive Parts and Sets Manufacturers to gain better knowledge of the situations and demands of this sector.

• Mr. Beyglou, thank you for the interview, let’s begin the interview on explaining the situation of parts manufacturing in the supply chain issue and how are conditions in this area?
I thank you for giving me this opportunity. I should say the supply chain can be viewed from several dimensions, the first is technology and know-how. In this scope, our parts manufacturers are somewhere in between, not like European parts manufactures in first rank and not backward like newly arrived countries. Our parts manufactures have shown good progress in some areas and in some other topics and fields, there is still room for work and progress.

• From what you say, the quality of Iranian parts manufactures’ produced must be very good, however, once in a while we see big criticism of their work.
Quality has direct relations with technology and know-how issue and definitely, this industry needs governmental supports for increasing its technological level.
I say with confident that Iranian parts manufacturers are very strong in quality terms and we have no parts manufacturer in Iran who is unfamiliar with global standards and qualifications concepts.
However, good implementation of these quality standards needs importing new technology.

• As you say technology must arrive in this industry, do we have problems for new coming and post- nuclear deal vehicle parts?
To see whether or not local parts manufacturing industry is able to conform itself with new vehicles, I should say we have only one concern for this matter and it is, financial issues.
If a local parts manufacturer could have funds and update his technology and knowledge, he would have no problems for updating his work.
Parts manufactures who are now working with Renault France and Renault Pars have no problems in financing; however, they; too, have concerns over their machineries and equipment as updating and modernizing them needs large amount of capital.

• What is your approach in promoting technical know-how and technology?
We should do this in different methods; that is, we should either import or buy modern technology by our own funding and financing; and/or, find foreign partners to give us this knowledge.
Of course, receiving license and/or partnership is among other resolutions we should adopt for realizing our goals.

• How do you see the future of parts manufacturing?
We predict in 5 to 8 years long, Iranian parts manufacturers will have a suitable and good percent of exports and we can observe their more powerful and global presence.

• What is your evaluation of importing foreign brands to Iranian market?
During past years, we benefitted from foreign brands’ presence in various conferences and events; however, in my opinion, we should be good listeners in such events. Foreigners can share with us their experiences and we can hear the secrets of their success and make them operational.

• Mr. Beyglou, what is Iran’s advantage for investor’s absorption?

The main advantages of Iran includes low wage, cheap energy, young and educated engineers of this country.
In terms of engineering, Iran is the third country in the world and this cannot be undermined. Essentially, foreign employers will have no problems for specialized forces in Iran. These advantages are effective; nevertheless, still, the balance is in favor of holding companies.

• Please elaborate joining foreign companies. Is that condition in favor of parts manufacturing industry of the country?
Partnership takes place when one party has the market and the other has the product. We have good market and will have no problems for partnership with foreign parties; however, we should reach a point we can enter into joint ventures with a specific percentage.
Foreigners need our market and we need their technology and knowledge. We have good capabilities for cooperating with foreigners because many European countries are currently in serious economic crisis.

• In your opinion, when can we have parts manufacturing and automotive industry with the ability of local design?
Essentially, the issue of partnership and production license is to gain this ability. We should be able to benefit the imported technology and knowledge in our own favor and at the end, achieve the knowledge of part design. The joint venture is a win-win game; sometimes we should give credits sometimes to receive credits.
To say this party is foreigner and he should give all credits to us is not a good thought. In our business interactions, we should move towards international methods and give us traditional ways.

• Your thoughts and opinions are interesting and sometimes farfetched. Has Iran Parts manufacturer Association done anything for materializing those opinions and thoughts?
Yes, the Association has already held several conferences and courses to change thoughts and views in business in order to increase interactions; nonetheless, the association is not able to force parts manufactures to do a certain work, we can just propose approaches. For this reason, at the 5th automotive conference too, Iran Parts Manufacturers Association and parts manufacturing are the main core. We have already given our opinions and suggestions. We were engaged in and supervised on inviting guests too. In my view, as the fifth conference has a heavier scientific core, it is a new experience and its results could be positive for automotive industry and its growth and excellence.