127 million Euro save in exchange by 3 internalization desk

Khodorcar - In June of this year, following the conclusion of the internalization contracts, the internalization movement of the start-ups began and it was decided to hold 5 internalization tables to internalize more than 100 pieces and to save about € 200 million in foreign exchange.

Right now from all 5 predicted desks in auto industry 3 of them are active and the 4th desk is inactive due to the coronavirus. 

Saeed Zarandi, Deputy Minister of Planning of Ministry of Industry, Mining and Trade recently announced the internalization of about 106 pieces at three internalization tables and announced that besides the automotive industry, internalization tables have been set up in other industries, with the number being 10 tables.

According to reports provided by the Ministry of Industry, the first part of the internalization process resulted in the domesticization of 33 parts with a saving of € 37 million and the second part of the internalization process resulted in the internalization of 35 parts with € 44 million. The third internalization table also included the localization of single components, which eventually resulted in the internalization of these components of € 46 million in savings.

The work of internalizing parts was on the agenda of the Ministry of Industry, with the two major goals of reducing dependence on domestic production lines to imported parts and managing foreign exchange resources being the goals of the internalization movement, and now the auto industry has achieved the most, according to the Deputy Minister. Take the share of internalization at the depths of the interior build so that a savings of € 282.5 million has been achieved in the automotive industry so far.

Ministry of Industry officials believe that this amount of internalization in the automotive industry has accounted for a 23% share of the currency savings that have been made through the deepening of the interior. According to them, in order to realize this amount of savings in the automobile industry, contracts with part-dealers have been signed at a cost of $ 3.2 billion.

Although the initial goal of the move to internalize the € 400 million in the automotive industry failed, holding three of the 5 projected tables could accomplish more than half of the projected goals. Now we have to see where the case of the internalization movement will come next year, because the fragmentation makers are currently facing a severe shortage of liquidity and a lack of co-operation with banks in paying for the anticipated facilities, which could also affect the internalization project.