Khodrocar_Iran Khodro has been seen as the largest domestic automobile with accumulated losses of over 7,752 billion USD in 2018. Saipa has faced losses of 5,980 billion in 2018, and the country's largest automaker has suffered a 424% loss since 2017.
The two automakers have issued a total debt of 57 trillion USD by the end of last year. But why do automakers suffer so much disadvantage that they even fall under Article 141 of the Commercial Code and become bankrupt companies?
Order pricing is the main cause of the car industry's loss
An economist in this case told the Automotive Reporter: "The pricing of the decree that has taken over the country's automobile chain for many years has been a huge contribution to the accumulated losses of 14 trillion Tomans of automakers."
"Grammar pricing in these years has been the main cause of the auto industry's decline," he adds. Exact pricing does not allow the price of sales of products to be commensurate with the cost of production, and in many products not only profits will not be obtained, but only an irreparable loss. "
"If you check the price and sales price of domestic cars over the past few years, you'll find that car makers failed to sell their products at an affordable price, and thus suffered losses, It's been a decade and it's not clear why it's being urged. "
Hamed Rezaei said about other reasons for this loss: "In addition to the implicit pricing, the outrageous US sanctions against Iran and the Iranian automotive industry, the inadequate business environment, and false decisions about the industry and the wrong policies of all And everyone has worked together to turn the automotive industry into a loss-making industry despite the ban on imports. "
"Automakers have recently been licensed to reassess their assets and seek to enforce it to circumvent Article 141 of the Commercial Code," he said. Of course, I do not think that reassessment will help much of the automakers' liquidity, and will only raise the value of their assets and capital against the accumulated accumulated debt and losses. "
Reclaiming the attractiveness of the wandering capital of the car industry
Last year, automotive industry also experienced a number of downs and downs, recording the huge losses of large automakers, the wave of unemployment and the adjustment of power in the component industry and the supply chain, and the turmoil of prices and confusion among buyers and sellers, among them. Most economic experts believe that today the automotive industry will have the potential to attract at least 30 trillion tomans worth of money to grow and jump, and if conditions for attracting wandering capital are provided, this industry will be lost and the turbulent market will be managed. However, price liberalization will definitely be offset by car makers.