Auto industrial park to boost car quality

Setting up an industrial park in Arg-e Bam to produce auto parts could play an important role in the development of the auto manufacturing industry and boost business relations between Iran and China.

Chinese Ambassador to Iran Pang Sen made the statement in a meeting with Reza Ashk, the governor of Bam County, IRNA reported.

“Car production and quality will increase with stronger cooperation ties between the two countries,” Pang said.

“While setting up an industrial park in Arg-e Bam, in the southwestern province of Kerman, will create more jobs, it will also result in a larger share of Iranian-made parts being used in the production of Chinese cars.”

The ambassador said the project will benefit both countries.

Pang said three Chinese auto companies, namely Chery, Lifan and JAC, have been working in Iran for over 10 years now, adding that this indicates healthy and productive relations between the two sides on all corporate levels.

During the last meeting between Chinese President Xi Jinping and his Iranian counterpart Hassan Rouhani, 17 memorandums of understanding were signed, one of which called for the development of auto production.

In the recent meeting on Monday, the governor of Bam noted that with the implementation of MoUs, the industrial park and auto part manufacturing in Arg-e Bam will soon begin.

Ashk added that Iran is open to the idea of Chinese companies setting up factories in Iran, as long as they adhere to the general policies of the administration in this regard.

“Hopefully, the indigenization of the local auto industry will also result in higher quality for Chinese cars made in Iran and production numbers will also increase,” he said.

Kerman Province has become the hub of Chinese automotive production in Iran in recent years, with the local Kerman Motors becoming the top producer of East Asian vehicles.

By Financial Tribune