It is only one month left until the end of the year 96 and the automotive industry still awaits for the government promises.
Khodrocar – This year began with good news for Iran’s automotive industry and it was expected that until the end of 1396, number of joint ventures would be inked. These joint ventures didn’t sign, nor the government realized some of its promises.
An industry that can be a part of economic boom and is able to do imports and exports but it seems that there is no such capability yet. Currently, the government is just looking for tariff increments and supporting the domestic producers.
However, the domestic consumers and producers have high expectation too. They want the government support while this organization is dealing with exchange rate fluctuations, tariff and raw materials increments. But this year, the support of of domestic products was indirect in a way that the automotive industry and other related businesses had big losses.
The government’s solution was to shut down the "Vehicle Import Registration Website” for nearly six months and the vehicle importers were damaged during this period.
This is while the President and the other authorities were talking about supporting the domestic products but nothing was done in practice.
Supporting the Vehicle Part Manufacturers
This year, in the last week of December, Iran Khodro’s CEO, Hashem Yekkezareh started to support the part manufacturers. He talked about the support of part makers and even announced their presence in one of Algeria's car manufacturing sites, but there has not been any news of this project and support plan since that day.
After that, Ali Larijani (Chairman of Iran’s Parliament), Aziz Akbarian (Chairman of Industries of Iran’s Parliament) and Mohammad Shariatmadari (Minister of Industry, Mine and Trade) talked about the support of vehicle part makers, but nothing happened in practice.
However, the part makers are most damaged from exchange rate fluctuations but they are hardly continuing their work.
Reza Rezaei, Director General of Automobile and Automotive Industries bureau told Khodrocar regarding the issue: "Meanwhile, bank regulation was the major problem of automotive industry and also the price increment of raw materials which is directly related to the government.”
Dead End of Foreign Investment
Foreign investment was a big dream for Iran’s automotive industry and the government paid a good attention to this part but things didn’t go well. Some experts believe that economic fluctuations and the lack of economic security in the country are due to the fear of some investors entering the country.
Khodrocar Reporter: Negar MirKarimi
Khodrocar Translator: Maziyar Jafarieh
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