Iran’s automotive industry has urged the Industry, Mining and Trade Ministry to increase the annual steel allocation for boosting auto part production. The Iranian Association of Auto Parts Manufacturers has written to the government regarding this, media reports said.
The government had allocated 10,000mt of steel for the auto part manufacturers in the previous Iranian year that ended on March 19, 2020. However, due to rise in the country’s car production in the current Iranian year, the auto industry has sought at least 15,000mt of steel for auto parts production.
The letter stressed the liquidity as the most important hurdle for boosting production in this sector and said: “Considering the dramatic rise in the price of raw materials, the manufacturers need the government to remove barriers in the way of their easy access to raw materials.”
In January, the association announced that the country has achieved 80pc self-sufficiency in the manufacturing of auto parts.