Khodrocar - The capital market, which has been trying to finance the automobile industry for many years now, by definition of tools, is nowadays more attractive to automakers than ever before, and it rescues them from bankruptcy because of their reassessment. Automakers will be able to raise capital, which will greatly improve their conditions. But why automakers haven't used this capacity enough so far is a question that has always been asked.
"Due to the lack of reform of the financial structure of car makers, it was not possible for them to use capital market financial services.” Mohammad Hossein Sadraei, expert of stock market told khodrocar reporter.
"But now that the capital market financing rate is lower than the banking system, automakers are entering the market, but the issuance of liquidity securities by automakers requires requirements that are not yet met in the automotive industry.” He added.
"This was at the same time as the profitability of the company's financial statements, so automakers must meet the requirements for issuance of securities that are generally absent from automobile companies.” He said.
"Automakers need to overhaul their financial structure and reduce financial costs in order to achieve profitability, but the question arises as to why automakers do not bring their lucrative companies into the stock market and why there is no talk of raising floating stocks to sell more market share?” he said.
"In the current situation, if the management structure is behind the structure of debt, these companies' debt ratios will be improved by reforming their assets and updating their assets, so they can better apply for the banking system.” He added.
"If there is a dilemma among car executives and different ways of selling, with carmaker executives in the next two years, after a reassessment, we will see profitable developments in the industry that will ultimately be able to deliver. The papers will be partnerships.” He continued.
Automakers focus on selling and using banking facilities to finance while the capital market has many capacities and financial means to do so and can provide it to the country's automotive chain, but lacks an efficient financial structure and Transparency has also made automakers do not always use this capacity and prefer to use banking facilities despite high interest rates. Now we have to see where the situation will be by reassessing and improving the situation.