TEHRAN – (Press TV) - On a hot summer day, the first thing that catches the eye inside the production hall of Zar Spring Manufacturing in Golpayegan is the orderly rows of dark, heavy alloy-steel bars waiting to be cut.
Within hours, these pieces of steel will pass through cutting, forming, machining, heat treatment and precision inspection before emerging as springs and other components used in vehicle suspension systems.
A weakened or broken spring can compromise a vehicle’s stability and control, particularly on bends and uneven surfaces, turning a seemingly minor component failure into a serious accident and, in the worst cases, loss of life.
The quality of the alloy steel, the accuracy of forming and machining, heat treatment, testing and protective coating all affect the final product. A disruption at any stage can raise costs, delay deliveries or interfere with vehicle production.
That is why the ability of an Iranian factory to carry out the full production of such a vital component using domestic capabilities is an important economic development.
The issue carries particular weight in Iran, whose automotive industry has spent decades developing domestic production while dealing with foreign restrictions, exchange-rate pressures and disruptions in access to overseas technology and components.
These pressures have encouraged the expansion of domestic parts manufacturing and gradually shifted a significant part of the automotive supply network toward Iranian suppliers.
Data from the International Organization of Motor Vehicle Manufacturers show that Iran has ranked among major vehicle-producing countries, with more than 1.5 million vehicles produced in 2017.
Iran has experienced the consequences of supply-chain vulnerability directly. The World Bank reported that after sanctions intensified, Iranian vehicle production fell from around 1.6 million units before the sanctions to roughly 700,000, with import restrictions, currency depreciation and difficulties obtaining foreign parts and equipment among the main causes.
For automakers, therefore, the availability of components is not simply a procurement issue. A critical imported component can turn exchange-rate fluctuations, payment restrictions or transportation disruptions into production problems.
Zar Spring Manufacturing illustrates how domestic production can provide an alternative.
According to CEO Alireza Pouyan, the company has developed production capabilities for various springs and components used in vehicle suspension and power-transmission systems.
Its alloy-steel raw material is supplied by Iran Alloy Steel in Yazd. The connection between Yazd and Golpayegan demonstrates the broader economics of localization.
Dependence on imported raw materials or finished components exposes producers to exchange-rate movements, payment restrictions and interruptions in international trade.
Iran’s automotive industry experienced this vulnerability directly after foreign companies withdrew from the country.
Iranian manufacturers increasingly turned toward domestic suppliers, while parts producers expanded their capabilities and began taking on components that had previously depended on foreign sources.
The increase has been driven in part by the shrinking availability of foreign alternatives and the sharp rise in the cost of imported goods.
For manufacturers such as Zar, completing more stages of production inside the country therefore becomes both an industrial and economic strategy.
Iran’s automotive industry has consequently moved beyond the simple question of whether a component can be produced domestically. The next challenges are improving quality, reducing costs, developing technology and expanding into new markets.
At Zar Spring Manufacturing, alloy steel comes from Yazd, technology has drawn on foreign industrial experience, production and quality control take place in Golpayegan, and the finished component moves to automakers or the aftermarket.