Iran automotive industry is dependent on the overseas manufacturers in both automobile – mostly luxury and expensive cars – and parts. Being expensive and bulky in volume, auto parts, including spare parts, CKD, and SKD, are one of the top 10 imports of the country.

Iran can produce more than 80% of plastic auto-parts but imports most of the electrical parts and those parts that are too complicated to be manufactured by the local part makers.

Although Iran has 1200 part makers, the volume of their products is not enough for the auto production process. Therefore, the country needs foreign parts to be imported and help supply the production line as well as after sale service section.

With an annual turnover of $ 8 billion and 550 thousand workers and staff, the domestic part-making section still suffers from a lack of liquidity. This lacking has resulted in decreased number of domestically produced parts and therefore increased the number of low-quality and cheap imported parts in the market in recent years. These low-quality parts, in turn, have decreased the quality of home-made cars. The final result of this trend has been unsatisfactory of consumers.

While about 60% of the market has filled with low-quality parts mainly from China, the market as well as the auto manufacturing industry is thirsty for high-quality products mainly from Germany, Spain, France, and Sweden. However, the price issue is very critical regarding the low/middle-income end-users of the country. So then, Iran auto part market would embrace any supplier who is interested in participating in this enormous and attractive market by high-quality auto parts but in reasonable and competitive prices.

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