Tire and Rubber in Iranian market

Category: Blog Published: Tuesday, 23 October 2018 Print Email
Tire and Rubber in Iranian market

Negligible share of Iranian market’s tire production in the great regional market
The high-end Iranian companies that are successful in the Iranian market, due to high tariffs, have a very small share of the tire's vast regional market; while there is almost no country in the region except Turkey for tire marketing.

The Ministry of Industry, Mines and Trade to compensate for the shortage of tire production in Iranian market has set up four start-up companies with the participation of the Industrial Development and Refurbishing Organization (IDRO) and the private sector 3 years ago. But despite the fact that none of these plans had any physical and technical advancement, except for landing and leveling the land, the construction of the new plant in Gachsaran, as the fifth company, was also heard.
There are several reasons for not launching these plans, but the more important point is the principle of the above-mentioned development method, which has become obsolete almost all over the world. Successful implementation of the five above-mentioned plans will bring the number of tire and tire companies to 15 countries out of marketing in Iran. While the European Union, the United States, South Korea and Japan, as the most successful countries in the manufacturing industry, do not face a large number of indigenous companies. The tire market is highly competitive in the world, as a result of which small companies will quickly be eliminated from the competition, and in Iranian market, companies will only be able to increase by 40% over the next year, thanks to the high tariffs that are being added each year, They were able to maintain their marketing in Iran and in the world.
Iranian high-end companies, which are successful in Iranian market, have a very small share of the tire's large regional market. Meanwhile, there is almost no country in the region except Turkey. But Saudi Arabia has a great deal to build a pipeline company, and over the past 5-6 years has completed the value chain of its base oil and gas products, including synthetic and soot products, and it is seeking to invest $ 1 billion To build a tire factory with a capacity of 16 million tire rings and 6 million tire buses / trucks, which is roughly more than the total production of Iranian tire manufactures.
Establishing large companies with a high competitive capability is on the agenda of Saudi Arabia and Turkey as regional rivals of Iranian market. Therefore, if these plans are implemented, in the next few years, import tariffs will be applied for marketing in Iran to support the 15 small Iranian network operators; of course If the Ministry of Industry projects are implemented, it will increase significantly.
Therefore, the new Minister of Industry, Mining and Commerce is invited to make a serious review in the strategy of the former Minister for the development of the tire industry in Iranian market and instead of the government's participation in setting up new companies, helping to develop successful and reputed companies such as Barez, Kavir and Yazd In the future, instead of supporting domestic production against the influx of imported tires, regional markets will target the export of high-quality Iranian tires.
The price of car tires and the impact of currency price fluctuations
Today, for all of us, it sounds familiar to us to hear a sentence like: (Mr. Green, the dollar is gone). An increase in exchange rates as well as the dependence of some commodities on the price of currency has a direct impact on commodity prices. Automobile tires, industrial tires, road construction tires and all wheel tires of rubber wheels are mainly imported from different countries for the country's consumption, which has a relatively high price per day for rubber tires out of marketing in Iran.
A total of half of the rubber used in the industry and transportation of the country is provided through imports, and numerous domestic factories contribute a little to a significant figure in the import of car tires for marketing in Iran, however, a large part of the raw materials of rubber manufacturing plants is also imported set. Rubber, which is a major component of rubber production, is produced in countries such as Malaysia, Indonesia, Singapore, Thailand and so on. The change in the exchange rate and the appreciation of the dollar has a direct impact on Iran's domestic goods.
Rubber is an important part of the transportation, agriculture, and civilian sectors of Iranian market. Increasing the price of rubber also has a significant impact on the increase in other service prices. Some of the industries that are directly related to tires and tires are discussed in this matter: The country's heavy transport industry, trucks, trailers, buses, fatalities, and equipment for shifting goods and fuel, and materials industry Food, loading and unloading devices at ports, Rich Stark, tractor terminal, airport equipment and airport machinery, warehousing industries and vehicles for shifting loads and consumer goods and fuels, etc.
Rubber prices
The country's manufacturing and manufacturing industries are from road construction, which includes major machinery including loader, mini loader and bobcat, graders, rollers, dump trucks, billhooks and excavators. Obviously, the increase in the price of rubber in this sector will increase costs in the industry out of marketing in Iran.
Agricultural and food industries, food distribution are directly linked to new tools, tractors, combine, etc. The price of rubber also plays an important role in maintaining the cost of these devices.
Forklift tires, which today play an important role in all small and large industries. The forklift truck facilitates the production of all heavy goods. The rise in the price of forklift tires also increases the maintenance and cost of goods and equipment in Iranian market.
That's an increase in the rubber rate in these categories, all of consumers who directly relate to buying tires in this area. One of the side-car costs that today can be classified as an expensive item with this rubber price.
With increasing import tariffs as well as rising exchange rates, rising prices for tires are unavoidable. Domestic rubber manufacturing plants, given the fact that tires and tires produce high quality and proper tires, meet the daily needs of all sizes of tires for cars, heavy industrial tires, industrial tires and forklift trucks, agricultural tires, freight tires and Commercial and such. Increasing import tariffs to support domestic production will also increase the price of rubber on the day and reduce consumer purchasing power. With the rise in price of rubber, only the tire industry and Iranian's tire industry are backed up and thousands of other industries in Iranian market would face problems. In order to support domestic production and industry, the prices of rubber and other basic materials must be fixed or reduced for the industry due to improve this market in Iran.

 

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