The auto parts manufacturing industry in Iran is one of the strategic industries in the car manufacturing value chain, which has relatively high job creation and value added. Since proper development of all links in the value chains in various economic sectors plays a significant role in the fulfillment of the objectives of the most fundamental economic policies of the country, such as increasing productivity, employment, empowerment of the workforce and enhancing competitiveness, this paper attempted to identify the factors affecting the competitiveness of auto parts manufacturing industry. For this purpose, the "systemic competitiveness" model was used. In this model, such criteria as cost components of the firm, the position of the firm in the value chain, the effect of the government's economic interventions in the sector (sectoral policies), the effects of the government’s general interventions in the economy (macro policies), the national and international macroeconomic developments, and the factors affecting Culture were among the major elements addressed in the analysis of competitiveness at micro, sectoral, macro, and ultra-macro levels.