35 percent decrease in car production in the first 7 months of the year has happened while automakers are saying that the number of unfinished cars has fallen down and they can fulfill all their promises till the January 2020.
Khodrocar - Vehicle production reached 430,823 units by the end of October, down 34.9 percent from a year earlier. During the same period, production reached 395,778 units, a drop of 36.2% compared to the same period last year.
This drop in production was recorded in October, as it seems that the Ministry of Health's plan to increase production has not only been implemented but has also been distanced from its goals, the main reason being the deficit of automakers.
"At the same time, another policy pursued by carmakers was to keep cars out of line and drive cars out of line by increasing the number of cars in the parking lot.” Saeed Madani, expert of auto industry told khodrocar reporters.
"It seems likely that part of the semi-finished cars will be sold in completed parking lots, which will outpace production this year.” He added.
"Formation of think-tanks and decision-making on the payment of 11 trillion rials facility, part of which was paid in rials, while the rest of the projected amount was not paid to auto makers, while the industry is facing severe liquidity problems and You have to reach out to the car makers because with the current minor pre-sales and overdue obligations the car makers will not solve the problem.” He said.
"Loss-of-production will weaken automakers and continue to predict that growth will not be possible until the end of the year, as automakers are already far below their production capacity and still require emergency funding to Increase their production rates, otherwise they won't help them in the coming months.” He mentioned.
"But after the payment of these facilities and a slight increase in cars, the carmaker's situation improved, but the reality was that the think tanks had adopted more facilities, while many previous carmaker obligations are now being delivered at previous prices. This has led to the loss of automakers.” He continued.
The current situation shows that the automotive industry needs more liquidity than previously thought, and perhaps the industry's most pressing problems need to be attributed to this, an issue that has not received much attention from banking officials.
This drop in production was recorded in October, as it seems that the Ministry of Health's plan to increase production has not only been implemented but has also been distanced from its goals, the main reason being the deficit of automakers.
"At the same time, another policy pursued by carmakers was to keep cars out of line and drive cars out of line by increasing the number of cars in the parking lot.” Saeed Madani, expert of auto industry told khodrocar reporters.
"It seems likely that part of the semi-finished cars will be sold in completed parking lots, which will outpace production this year.” He added.
"Formation of think-tanks and decision-making on the payment of 11 trillion rials facility, part of which was paid in rials, while the rest of the projected amount was not paid to auto makers, while the industry is facing severe liquidity problems and You have to reach out to the car makers because with the current minor pre-sales and overdue obligations the car makers will not solve the problem.” He said.
"Loss-of-production will weaken automakers and continue to predict that growth will not be possible until the end of the year, as automakers are already far below their production capacity and still require emergency funding to Increase their production rates, otherwise they won't help them in the coming months.” He mentioned.
"But after the payment of these facilities and a slight increase in cars, the carmaker's situation improved, but the reality was that the think tanks had adopted more facilities, while many previous carmaker obligations are now being delivered at previous prices. This has led to the loss of automakers.” He continued.
The current situation shows that the automotive industry needs more liquidity than previously thought, and perhaps the industry's most pressing problems need to be attributed to this, an issue that has not received much attention from banking officials.
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