Iran Khodro, the largest car manufacturer in the country, is moving towards becoming the Toyota of Iran. This goal not only means producing cars of quality similar to Toyota but also involves changes in macro production strategies and improving the quality and safety of vehicles. In fact, Iran Khodro is seeking to achieve industrial-economic resilience and reduce dependence on government interventions.
Why Toyota as a Model?
Toyota is recognized as a global model in the automotive industry for its production system, quality, and after-sales service. This system is based on eliminating resource waste and cumbersome bureaucracies while respecting processes. At Toyota, quality is established in the early stages of production, and workers are able to stop the production line upon noticing defects. Until Bahman 1403, Iran Khodro, under government management, had become accustomed to maximum production rather than maximum efficiency.
Read more: Increase in Container Shipping Rates from Asia to America to the Highest Level Since 2022
Challenges Ahead
Transforming Iran Khodro into the Toyota of Iran requires deep changes in organizational culture and a focus on quality. Despite logistical challenges and economic crises, the new management of Iran Khodro has managed to maintain the supply chain and start producing new generation vehicles like the Tara Hybrid over the past year and a half. This decision has been not only an economic choice but also a strategic one.
The automotive industry in Iran acts as the beating heart of more than 60 downstream and upstream industries. From steel and petrochemicals to polymer products and logistics services, any disruption in Iran Khodro can have serious impacts on the employment and livelihoods of hundreds of thousands of families. Therefore, moving towards becoming the Toyota of Iran means maintaining the value chain and accountability in parts supply.
However, challenges such as arbitrary interventions and lack of access to modern technologies exist in the path of Iran Khodro. To achieve the goal of becoming the Toyota of Iran, there is a need to create a stable environment free from government interventions. Additionally, economic diplomacy must be such that modern technologies can easily enter the country.
Ultimately, becoming the Toyota of Iran is an existential necessity for Iran Khodro. If this company cannot transform into a real enterprise by reforming its organizational culture and focusing on quality, it will face serious challenges in the future. This transition from state-owned automotive manufacturing to private industry will benefit not only a specific management stream but the entire economy of the country.
Read more: Continuous Government Management and Sustaining Country Development in Wartime Conditions · Mahdi Naqvi and the Controversies of Morvarid Petrochemical
