The private sector in automotive industry developed and grew so fast that they were able to increase their market share in comparison to the last year. However, the question is that why they are not supported?
Khodrocar – It has been for years that the privatization plan is going to be implemented. But nothing happened indeed and this plan is limited to some negotiation and government companies still have the most share of the market. On the other hand private companies grew very fast and increased their market share from 2016 to 2017 by 9 percent.
Statistics show that only 136 thousand and 338 produced cars belongs to the private sector last year, which grew by 25 percent compared to the last year. Statistics also show that automobile privatization accounted for 9% of total car production in 2017 and this shows its high potential for car production. But it seems that there is not much support for this sector, although the statesmen knows that there is more benefit in private sector than the governmental.
Considering the sanctions and global limitations, is this growing process will continue?
Ali Shokouhi, an automotive industry expert told Khodrocar regarding the issue: "It is expected that the domestic car production will increase because of the reduction of imports. According to Shokouhi, with a look at car manufacturing statistics last year, a 5 percent increase in car production in the year 2017 is obvious.”
Ali Shokouhi, an automotive industry expert told Khodrocar regarding the issue: "It is expected that the domestic car production will increase because of the reduction of imports. According to Shokouhi, with a look at car manufacturing statistics last year, a 5 percent increase in car production in the year 2017 is obvious.”
He mentions the previous supports of the government and says: "But this year's pressure on imports and policies, among other things, has led to less government support for the private sector, in a way that some companies planned to leave Iran’s market. I think the cars’ production share of private sector will reduce.”
Shokouhi explains: "I expect that the vehicle production volume will increases by 7 percent and reach 1 million and 400 thousand vehicles.”
Shokouhi explains: "I expect that the vehicle production volume will increases by 7 percent and reach 1 million and 400 thousand vehicles.”
He believes that the production of some companies will decrease and some other will increase and market capacity will be fluctuated.
In response to the question about why, despite the emphasis of the president and the minister of industry last year on privatization, this is still not possible for automakers, he says: "During this period, the private sector made some efforts but the government was completely passive. With the improvement of economic situation, many industries including automotive industry will improve.”
Khodrocar - While the government has always encouraged private companies to grow and increase production, they have also placed obstacles on them. An example for that is the ban of car imports which led to decrease of private companies’ relations with foreign partners and their unwillingness to invest in Iran.
Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Maziyar Jafarieh
Khodrocar - While the government has always encouraged private companies to grow and increase production, they have also placed obstacles on them. An example for that is the ban of car imports which led to decrease of private companies’ relations with foreign partners and their unwillingness to invest in Iran.
Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Maziyar Jafarieh
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