Scrapping cars industry is surfing on governmental decisions and exchange rate impacts and they are waiting for 2M certificates. In this situation all scrap yards are not working and jobbers are using this condition.
Khodrocar – since last year with the new laws scrapping market faced with some chaos and now more than 2M scarp certificates are waiting and scrap yards can’t do anything. Because, only importers and part manufacturers remain to scrap cars while automakers are producing with no problem.
Right now, share of automakers in scrapping vehicles have decreased and importers have to cover this pressure. Meanwhile, importers have different problems since last year and these days they are struggling with exchange rate fluctuation and they have difficulties for scrapping worn out vehicles.
In this situation, scrap yards are hurting mostly and Chairman of the board of scrap yards and recycling centers association once said that near 90 percent of scrapping centers are going to shut down and they faced full Depression since February 2018. Now the question is does exchange rate fluctuation and unified exchange in 42000 IRRs has effects on scrap centers activity?
"Exchange fluctuation doesn’t have direct effect on scrap centers activities but they are affecting importation which will have direct effect on this industry.” Said Mostafa Joodi, chairman of the board of scrap yards and recycling centers association. "Right now, any changes in exchange rate and imported vehicles’ prices have effect on the related industries and now we have to wait to see in the sanction period what will happen to importation and related decisions?”
"Fuel and transportation headquarter is responsible to vehicle scrapping plan and they are not doing well. So that they gave the responsibility of scrapping Tehran’s taxies to an illegal center. When this organization won’t obey the law, jobbers will take the market.” He added.
"The supervisor doesn’t have any plan for vehicle renovation and because of that 2M certificate is waiting for process and the condition is getting worst for scrap center and they are going to shut down.” He said.
Officials, experts of this industry are facing with different financial problems because about 200 centers have added to the previous centers but increasing the number of these centers didn’t work. Since last year automakers are exempt from scrapping vehicles and all pressure is on importers and part manufacturers shoulders. Meanwhile, importers and part manufacturers have their own different difficulties. In this condition, producers have to take responsibility not only economy activists which have no role in producing vehicles.
Khodrocar Reporter: Negar MirKarimi
Khodrocar Translator: Amin Zamani
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