The world has seen many changes in the automotive industry over the past decades. One of these changes is very evident in comparison to other cases.
The world has seen many changes in the automotive industry over the past decades. One of these changes is very evident and important in comparison with other cases; the phenomenon of globalization of automobile production, which has always been the attention of experts and experts of this industry. The clear sign of this is the shift in the place of car production globally. In the near future, Western Europe, North America and Japan were the only automotive production areas; while, over the past few decades, and implementing the policy of globalization of production, major automobile factories from the aforementioned regions were transferred to developing countries, and in particular to the Asian continent Production in these areas has also spread to the industrialized countries.
On the other hand, during the past years, increased competition between global car manufacturers and increased pressure to improve quality and reduce production costs have had the greatest impact on the intensification of globalization of the industry. In the past 20 years, in fact, the transition from centralized and traditional production to global production, automobile factories in Eastern and Central Asia have seen the highest levels of foreign investment and increased quality and quantity of production. In the early past decade, the largest share of foreign investment in the automotive industry was reported in Eastern European countries, especially in Poland, the Czech Republic and Slovakia. In addition to having plentiful and cheap labor, these countries had the right conditions to attract foreign investment. These investments were not limited to the above-mentioned countries and were extended to all parts of the world. Thus, over a decade, car production increased dramatically. With the increase in production, the need for spare parts for manufactured vehicles, the manufacturing industry has undergone fundamental changes and significant development. Based on the classification of economic activities in Europe, the industry of components and spare parts for agricultural, industrial and automobile engines is classified. The automotive industry, as one of the leading sectors, has been able to play an effective role in the economy by creating past and past connections with economic subdivisions such as metal, textile, and chemical industries, so that in developed countries, automakers have a high share of Gross domestic product. This share is 14.7 percent in the United States and 4.9 percent in Japan, and in general, 7.5 percent of the world’s GDP belongs to this industry. According to the Hoover Research Institute, there are now 45,000 wholesale and retail companies worldwide selling and supplying spare parts for automobiles, and the industry’s total worldwide trade is $ 135 billion a year. The five Genuin Parts-Auto Zone-Advance Auto Parts-CSK-Pep Boys-each earn one more than $ 1 billion a year. Accordingly, 50 of the world’s largest manufacturing companies account for 50% of the total global trade in automotive parts. The demand for auto parts depends on the following factors:
1-Average car age
2. Distance traveled
3. Climate conditions The profitability of the component companies depends on two very important factors:
1. Manage the quality of manufactured parts
2-Success in marketing so that the relative success rate of small-scale manufacturing companies could be more competitive than large firms. Small companies can take advantage of their larger rivals by applying policies such as the production and supply of specific parts for customers, or the provision of more services, and the rapid delivery and delivery of marketable parts of the market. According to the findings of the Hoover Research Institute, the average annual revenues of the world’s largest manufacturing companies are as follows:
1. Large wholesale companies for parts per employee of 700 thousand dollars a year
2. Small retail outlets per employee for $ 100,000 per year
3. Major retail companies for parts per employee of $ 170,000 per annum. Due to the capacity created in recent years in Iran, the share of automobile industry from gross domestic product has reached 3-5% Considering the hidden demand of the car due to its low per capita ownership, young age and high life span of existing cars, this industry can play a greater role in job creation and economic growth if leasing companies are strengthened and full implementation of the replacement of worn out vehicles. . It should be noted that Iran, with an annual production of about one million units, is considered the largest automaker in the Middle East. The saturation of the world’s developed markets and the need to transfer capital to emerging markets, the growth of 70% of the world’s manufacturing industry by 2015, and the global need to produce low cost auto parts, is one of the opportunities that the country’s manufacturing industry must take seriously. To pay attention. Now in the automotive supply chain, about 1,000 small and large units are operating and have provided 500,000 jobs. The turnover of this network is about 50 trillion rials per year, which is expected to increase to 100 trillion rials in the next few years. In order to provide services to the domestic automotive industry, the component industry must function globally and enter the foreign markets, because without the globalization of the manufacturing industry, it will be difficult for automakers to enter the global markets. At the moment, at least 1 percent of the global market share is part of the country’s small-scale manufacturing industry, and it is anticipated that over the next decade, around $ 10 billion of foreign exchange earnings will be available to the country. The dynamics of the automotive industry and the rapid changes and the successive changes in production lines have led the company’s component companies in Iran, especially in recent years, to keep up with the needs of the domestic market, which, given the limits on car imports and exclusivity The car market in Iran, these companies have somewhat succeeded, but due to the quality of their products, they need fundamental changes in order to be present at the global competition. Our country has no comparative advantage in the field of automobile production, and therefore, it is possible to focus on automobile production solely on the basis of current and monopolistic requirements. Competition in global markets is a very important point that the industry has responded to. In the composition of the shareholders of the companies, the presence of effective companies and government agencies is quite tangible. The majority of their shares are provided to the automobile companies of Iran, including Iran Khodro, Saipa, Bahman Group and Tractor Manufacture, which are the largest automobile companies in the country, and the major shares of these companies are in the organization of expansion and modernization of Iranian industries. The presence of true stockholders in these companies is not appropriate. On average, 19% of their shares belong to the general public, which is due to the low volume of transactions and the not-so-good liquidity of these companies. On the other hand, according to the CEO of IranKhodro, the company last year had the largest share in the export and sale of passenger and commercial vehicles. Manouchehr Logici said at the first meeting of the company’s overseas dealings saying that globalization is being promoted through the development of the national brand, “To export to the world markets of CIB and CECI mines, We have considered. Also, the Deputy Director of Iran Khodro’s exports, referring to a 200% increase in riding exports in 2006, said that the export of castings had grown by 20% to $ 200 million, while spare parts exports grew by 313%. The car manufacturing industry in Iran began in the late 1940s with the production of bodywork, especially the bus and chassis, and has been hit by the political and economic situation of the country, with the adoption and enforcement of car law in the decade. 70 has begun a relatively significant and unprecedented development trend in the industry. The automotive and automotive market in the Persian Gulf The Gulf region is one of the largest markets for the consumption of goods and services in the world due to the wealth and abundance of the population, which has always been of interest to manufacturers. Over the years, imports of goods and services are the most important action of the regional governments, rather than economic development, with the greatest importance given by the services sector to the national economy, related to the importation of goods, and economic development is in the next priority. The intellectuals and political and economic leaders of the region have no coherent planning to control the population. Of course, one should not deny the planning and policies associated with it, but compared to other parts of the world, the programs in the Middle East are slow to control the population and is not booming, while the average in East Asia is only 5 / 1 percent reported. There is, of course, no consensus on this issue. One of the most desirable goods imported into this region is “Automobile”. In other words, the car market is booming in this area. To prove this, it is worth mentioning that from 1995 to 2002 alone, the car market grew 149 percent in this part of the Middle East, while the market for three African countries, Egypt, Morocco and South Africa grew by only 8 percent. Economic analysts and market issues in Britain predict that the car market in North Africa and the Middle East will grow at least another 50 percent within a decade. According to the group of experts, only 1.5 million light commercial vehicles entered the Middle East during the study period, and this The number is other than riding cars. Undeniably, it’s clear that the size and structure of car-buying markets in each of the countries mentioned is unique and unique. For example, the economic and commercial policies of each country regarding the licensing of car imports or domestic production as well as the volume of consumer demand are among the factors of national development of the car market. The development of the car imports and consumption market among the six Gulf Cooperation Council countries is not the same. It should be noted that the number of cars in these countries increased from 178 thousand vehicles in 1995 to 411 thousand vehicles in 2002. Currently, Saudi Arabia alone accounts for 46% of the total car market in the six countries. The UAE 24 and Kuwait also account for 13%. The change in the value of the dollar and the increase in oil revenues in each of these countries also contributes to the implementation of this policy. Arab Gulf Arabian Trade Sources announced the value of the automotive spare parts market in the Gulf region in 2005 at $ 12.6 billion. More than $ 4 billion and $ 900,000 worth of Dubai, up 40 percent from last year. The value of car dealership and spare parts in Dubai in 2004 was three billion and $ 500 million. According to statistics, imports of auto parts and spare parts to Dubai last year went up from $ 2.2 billion to $ 3 billion, and exports from $ 143 million to $ 254 million. Also, the total value of re-exports of spare parts and spare parts in Dubai was $ 1. billion and $ 100 million last year to $ 1.6 billion. Car dealerships and car dealerships rose 155 per cent in Dubai between 2000 and 2005, putting the city at the forefront of the third largest export destination in the world after Hong Kong and Singapore. “The Middle East, the sub-continent of India and Africa, whose entire population reaches more than a billion people, are the main markets for the re-export of these appliances from Dubai,” said Michael Dan, director of the Gulf’s “auto-show” in the UAE. Referring to the growth in demand for spare parts for cars due to increased production and import of cars to the Persian Gulf region, he added: “The highest ownership of the car in the world belongs to this region. The annual growth of automobile sales in the Persian Gulf region is more than 4.6 percent And estimated in the UAE more than 15.9 percent, pointing out that the value of its vehicle and equipment sector in the Gulf countries exceeded $ 12 billion (46 billion drams), predicted that this sector will have a rapid growth in the future. To be More than 60% of the cars are in the Japanese Gulf, 13% are American, 12% are European and 15% are made by other countries. The Islamic Republic of Iran, with its size, population and energy resources, and also for reasons such as the transition from the postwar period, needed to improve the fleet of vehicles, increase domestic demand and so on as the largest consumer market for automobiles and the only vehicle manufacturer. Middle East is known. According to British experts, in the next decade, economic growth and the market for car production and consumption in Iran will continue to grow, rising and rising. These analysts believe that the use of foreign technology and the attraction of capital or the participation of major East and West car makers, such as Korea, Malaysia, France and China, are among the factors behind this advance. By the end of 2008, the volume of car sales in Iran is expected to reach more than 9 million units. But the main threat to this issue is the economic conditions and political challenges facing Iran in the international arena and the ability to attract foreign capital to the automotive industry. According to reports from the Arab Industrial Development Organization, demand for all types of vehicles in the Arab countries, and in particular Gulf Cooperation Council countries, grew by 4% year-on-year to 1.2 million in 2005. This increase in demand has led GCC member states or the Gulf Cooperation Council to think about setting up automotive factories and native industries in the region. Since the technology for such an action is not available to these countries, it is decided to co-operate with and participate in one or more large and famous automobile companies in the world. The most important countries in this regard are Saudi Arabia and the United Arab Emirates. According to GCC’s industrial and economic experts, the two countries have the largest potential to launch the automotive industry, compared to other countries. According to this program, the production of chambers, chassis and vehicle parts in these countries will begin. Other programs are also underway to explore the development of the manufacturing industry and mass production of batteries, tires, radiators, filters, glasses, safety belts and other parts in accordance with international standards. The Gulf Industrial Advisory Organization (GCC) has released a report and the forthcoming prediction of the automotive industry in the GCC that it is necessary to invest huge amounts of money in order to set up such an industry, and the GCC countries can take action with private sector partnerships. According to the statistics released in the report, the GCC investment in the automotive industry in 2004 was as follows:
Saudi Arabia $ 980 Million Kuwait $ 67 Million Emirates $ 56 Million Bahrain $ 22 Million Oman $ 14 Million Dollar $ 6 Million Although all these countries are heavily dependent on oil revenues and about 75 percent of their total national income depends on oil sales. But there are plans to reduce this dependency to 30 percent, most notably because of the development of industry, especially the automotive industry, so it is clear that GCC members will invest in this industry. More than 300 industrial centers are currently operating in the GCC automotive sector using 26,000 human capital and with a value of $ 1.1 billion. According to the 2005 figures, most of the centers’ products are related to cars like garbage trucks and the like. Saudi Arabia holds 169 automotive and spare parts factories, with a total investment of $ 865 million in first-line manufacturers. Kuwait with 14 factories and 53.6 million dollars in second place and UAE with 40 million dollars and 53 manufacturing centers in third row. Saudi Arabia is the only country that operates in the production of engine parts, but not only this country but also none of the other five countries has experience in the production of body and engine shells. The only factory in the area that is seriously assembling the car is the Jumeih factory in Saudi Arabia, which assembles the bus, on a small and limited scale. The production capacity of this plant is between 250 and 300 bus units a year. In Gulf Cooperation Council countries, some car parts, including brake shoes, air filters, lubricating oils, motor oils and car batteries are produced. Saudi Arabia, Oman and Kuwait are among the most important component of the GCC. The weaknesses and suggested strategies of a group of industrial and economic experts, while studying the automotive industry in the Arabian countries of the Persian Gulf region, have described the main reasons for the failure of Arab countries, especially GCC members in the automotive industry, as follows:
1. The lack of a common strategy for the establishment of automotive industries in Arab countries or members of the Gulf Cooperation Council
2. High production costs and non-participation of the public sector of the member states of the Council for cooperation with the private sector in the field of investment or support of this industry
3- Obtaining taxes and heavy burdens for the import of cars and equipment required by the automobile industry by some non-
GCC 4- The strong dependence of the automotive industry in the Arab countries on imports of automobiles and parts and spare parts that increase the price of domestic products compared to imported types.
5. There is a clever and close competition between car manufacturers and lack of infrastructure to compete with Arab companies with world-famous companies.
6. There is no export power or superior technology in the Arab countries. For all of these reasons, there is a new program for the production and development of industry, especially the automotive industry, in the Gulf Cooperation Council countries. On the other hand, for the accurate planning and policy making in this section, the following programs should be considered as effective strategies for the development of this industry in the Arab world:
1. Creating a very strong and rich database for the construction of a car
2. Close cooperation to ensure the coordination between the automotive industry and its related industries
3. Distribution of the industries manufacturing the main parts of the car in countries with appropriate and relevant infrastructure
4- Establishment of the Arabic Automotive Technology Center for the training and training of skilled and expertly trained personnel
5. Development of automotive related and downstream industries
6. Use of parts produced in Arab countries
7- Close cooperation with reputable and renowned car makers in the world
8. Establishing a car marketing company and sales system in Arab countries
9. Development of basic industries and maternal import of automotive parts The spare parts market in the GCC countries is very booming. Due to the variety of automotive products and the need for parts, large volumes of foreign currency are spent every year on the import of spare parts to these countries. According to statistics from news sources and industry, the market value of spare parts in these countries is more than $ 10 billion a year. The main reasons for this economic boom in the import of parts and spare parts can be summarized as follows:
1. Weather conditions of the area, such as heat and humidity
2. Geographic and monsoon conditions such as the presence of desert and Ramilla areas
3- Variety of imported products (multiple brands)
4. There are possibilities of re-exporting parts and spare parts of the car
5- Imports of second-hand vehicles to the markets of this region
6. Extensive use of cars in everyday life
7. The cost and the fuel consumption of vehicles
8- Getting together with spare parts manufacturers such as Turkey, Pakistan and India
9. Inadequate production of spare parts in member countries
GCC-10- Increasing population rate
11. High average per capita income
12. The high cost of producing spare parts and the requirement for Iraqi imports Some experts believe that after stabilizing the country’s political and economic conditions, Iraqis will try to stabilize the level of gasoline prices to the Gulf states. Such an action will undoubtedly have a significant impact on the demand for cars, and in the short term, many luxury and expensive cars will come to the country, such as those of Mercedes-Benz and BMW. In this way, the Iraqi economy will experience a car imports shock. It should also be expected that fuel price increases will increase the cost of using private cars in the long run, reducing the demand for car imports or purchases. It is also expected that if the security situation in the country improves, the incomes of the Iraqi people will increase, and with the stabilization of the political and economic situation, the purchasing power of the people and thus the demand for the car will increase significantly. Experts estimate that, by 2009, the average per capita income per Iraqi would be as high as that of Iranian citizens. Of course, this dream will come only when the Iraqi security and political conditions change in general. In this way, in the next phase of developing the car market in Iraq, demand for new car imports will tend. Should this be achieved, the need for imports of spare parts and consumables will also increase, and Iraq alone will play a significant role in improving the level of consumption and import of spare parts. Now it’s the turn of the big automotive companies to understand the opportunities that have come to be seen in the thriving Iraqi market and to market their production cars. Obviously, in such a challenge, the winning leaf gives the group of manufacturers less costly to bring their products to this market and, by lowering the cost of their products, earn more. UAE The United Arab Emirates has become a major commercial center in the region, due to the implementation of special economic programs and special trade policies. On the other hand, the level of income per capita in the UAE is very high, and the high purchasing power in the country has accelerated the import of the car to it. Saudi Arabia is the second-most car market in the Gulf states after Saudi Arabia. Also, the average car’s life in the country has increased over the past decade from an average of 4 years to 12 years. That is, the volume and volume of car imports have directly affected the volume of spare parts and parts imported by the automobile, and annually a lot of spare parts are imported into the country. Of course, re-exportation of spare parts is one of the economic policies of the country and a significant share of imported parts to the UAE is exported or smuggled to other Gulf countries, including Iran. According to data released by UAE sources, in 2003 alone, 52% of all Japanese construction vehicles were exported to UAE. In the same year, 3.2 percent of all American automotive products were exported to the UAE, and European and Korean automakers also shipped 18 percent and 4. 5 percent of their production to the UAE. Many car makers are supplying the UAE market with spare parts and parts needed for their production vehicles. For this reason, parts of Japan, America, European countries and South Korea are being imported into the UAE market, and most of these spare parts are shipped to other Gulf countries. The UAE’s auto parts market value in 2002 was $ 767 million, but a year later, it reached $ 939 million in 2003, and exceeded $ 1.80 billion in 2004. Of course, $ 702 million was sent to other countries in the region for export. Emirate’s internal resources have reported an average annual growth rate of between 5% and 6% between 2004 and 2007, in the UAE.
The UAE car market is divided into two parts:
The first part represents 52.19% of the total market for riding cars, and the second part with its 81.87% allocation is related to the market of heavy and heavy trucks. Nissan, Honda and Toyota have the largest share of UAE’s second-hand car market, and since 1995, they have begun operations. German company BMW has since 1998 started selling second-hand cars and spare parts in the UAE. The remarkable thing about the automotive parts market in the UAE is that car brakes and car batteries have a two-digit growth average and, as compared with other vehicle types, the most demand is for these two groups of components. Emergency vehicle market players in the UAE cite annual demand for five million vehicle types. The most important point that international manufacturers are considering entering and operating in the automotive parts market of the United Arab Emirates are as follows:
Quality of parts, cost and competition and durability in the market. Japan, Germany and the United States are the most important exporters of automotive parts to the UAE. According to the US Department of Commerce, about 60 percent of all imported vehicles and vehicles are imported into the United Arab Emirates by exporting to the Islamic Republic of Iran, Egypt, Pakistan, Syria, India, Poland, the Commonwealth, Bahrain, Saudi Arabia, Kuwait, Oman and Qatar. Accordingly, it is expected that in the next three years, the following items will be considered as the most expensive automotive parts in the UAE market:
1-Brake parts 2-Airbag (Airbag) 3-Sport rims 4-Antenna 5-Polisher and shiny paint and car body 6-Brake parts Hydraulic 7-Shield and shield shield 8-Release (Audio system) 9-Pump 10-Cylinder Injector 11-Hydraulic Suspension and Steering Parts 12-Car Color 13-Seat Cover 14-Speedometer 15-Water Pump and Fuel Pump
Saudi Arabia has the largest automotive market in the Gulf countries after Iran. Of course, this country is ranked first among the Arab countries in terms of car and vehicle consumption. A total of 545,000 vehicles were sold in 2007, according to official Saudi data sources. The low rates of inflation, low interest rates, and the rapid and easy provision of bank credits to car users in the country are among the most important reasons for the high demand for cars and spare parts. According to estimates, car sales in Saudi Arabia will reach 660,000 units a year by 2012, up from 21 percent in 2007, compared to 2007. However, in the past five years, car market growth was only 10 percent. Therefore, it can be expected that the pattern of vehicle consumption in the Gulf region will change. Hence, the demand for small and medium-sized vehicles will increase, and the young people’s average population and per capita income will be affected by low consumption and bank lending as factors driving this change in consumption pattern. In such a situation, European automobile companies will face challenges to stabilize Saudi market presence, especially as the further depreciation of the dollar against international currencies will affect the per capita income of the Saudis. Of course, experts believe that this issue is not too worrying since the agreement of the Customs Union between the Gulf Cooperation Council and the European Union will be in place since 2010. One of the most influential factors in the demand for car parts in Saudi Arabia is to build a fleet of passenger cars in the United Arab Emirates. The growth of demand for new and advanced cars and the improvement of existing vehicles has led to the use of Emirate second-hand vehicles from the Saudi market. That’s why demand for cars and spare parts is increasing sharply. The Saudi market has changed its route to cheap and small cars; therefore, the world’s largest automakers have plans to produce small and cheap passenger cars for the Saudi consumer market. Hence, a strong competition is expected to be launched in the near future for the supply of these vehicles to the market. Obviously, in this competition, the low price and superior quality will be decisive. Nissan Motors, which has the largest share of passenger cars in the Saudi market, has plans to stabilize its position on the market; the Nissan Motors company in Morocco, in partnership with Renault’s Renault, will soon start selling low-cost Logan cars. To be launched on Saudi Arabia market. This policy is highly successful in a country like Saudi Arabia, because in a country with second-hand cars, the conversion of an old car into a new and cheap car will be highly desirable, and demand for this type of product is highly appreciated. The Chinese company Chari also targets the market for cheap Saudi riders and tries to make an acceptable contribution.
Kuwait: The automotive and automotive market in Kuwait has always been thriving, and it is one of the most important car security centers in Iraq. Second-hand vehicles will be exported to Iraq from Kuwait. Experts expect a steady decline in the Kuwaiti car market over the next five years. Of course, European and German automakers are hoping that things will improve in this market. The car market in Kuwait declined by about 0.2 percent in 2007 compared to 2006, but according to international experts, in 2008, compared with the previous year, at least 1.2 percent would increase to 112,000 and 728 units. Receipt. But the issue is not going to end here, because according to estimates, the car sales in Kuwait will drop to 108,188 in 2012, which will be about 2.9 percent lower than in 2007. Due to the structure of the Kuwaiti economy, car sales and spare parts sales in the country have been much lower than in other Gulf states in recent years. The Kuwaiti market is currently facing the most demand for SUV-style cars, and the pattern of vehicle consumption from luxury cars has shifted to this direction. On the other hand, the reconstruction of Iraq has caused the Kuwaiti shipping industry to strive to supply heavy trucks and parts. Due to the desire of the Kuwaitis to play a role and economic income in Iraq, now the enormous and long-term Iraqi reconstruction project is a good opportunity for heavy vehicle suppliers in Kuwait. According to market automobile analysts in Kuwait, this is a good opportunity to boost sales of heavy commercial vehicles in Kuwait, which will be partly offset by the recession and the recession in the country. Experts note that increasing the level of Iraqi government relations with Iran is a good opportunity for Iranian automakers. According to them, Iranian automakers will have the opportunity to take part in the Iraqi car market on the pretext of promoting the level of business relations with Iraq. The unrest in Baghdad and Basra has worsened the political and security situation in Iraq, and border trade and car exports from Kuwait to Iraq have also been affected. However, BMI experts believe the car exports from Kuwait to Iraq will grow by 2.9% annually from 2005 to 2010, and the value of re-exporting the car from Kuwait to Iraq is $ 61.62 million The year 2006 will increase to $ 68 million in 2010. Bahrain is projected to decline significantly in line with the decline in GDP growth in Bahrain. The market for car and spare parts sales is projected to decline. Of course, the saturation of the market and the completion of the car market is also due to the cause. American automakers, including General Motors, are trying to keep pace with the Bahraini market in such a situation. The company, with its annual growth of 23 percent, managed to sell 1,811 products in Bahrain in 2007. Experts believe that General Motors is one of the Bahraini markets, and various types of products are sold freely in Bahrain. It should be noted that the total sales volume in Bahrain is 42,000 units a year. Currently, the Bahraini banking system pays 4 to 6 percent profits to buy cars, which can increase consumer purchasing power. Because of the limitation of Bahrain’s land and the market density of all types of riding cars, there is a strong competition for car sales in the country. On the other hand, the cost of ownership of the car in the Arabian Arabian Sea of the Gulf is very high. The overall forecast is that since 2009, the car market in Bahrain has witnessed about 5 percent growth. Also, by 2012, the car market in Bahrain will be 33 percent larger than last year. In 2012, 56,500 vehicles will be sold in the country. Due to the conditions prevailing in the Bahrain car market, the spare parts market is limited in this country, and most cars are exported abroad at the stage of depreciation. Because of this, the market for car parts and components in Bahrain is very small compared to the UAE market.