Meanwhile, the Central Bank emphasizes the non-allocation of NIMA currency to the automotive industry and parts that a specific mechanism has not yet been defined to provide currency for parts manufacturers, and it will not be easy to find export currency for exporters.
Khodrocar - The issuance of a 10 percent and 23 percent increase in car prices has been issued while parts industry activists believe that not only will they not contribute to the increase, but that their costs will have risen sharply with the halving of the NIMA currency, while state-owned companies supply raw materials. They continue to raise prices without any hesitation. However, in the latest decision of the meeting of the Production Support Camp, the Central Bank agreed to import raw materials without transferring currency. It seems that the currency restrictions of the Central Bank have led to this decision.
"The NIMA currency of the auto and part industries has been cut off since the beginning of this year, and parts manufacturers have not been able to receive the currency despite registering their orders, and they have been told to find an exporter and buy his export currency.” Mehdi Motaleb Zadeh, deputy manager of part industry association told khodrocar reporter.
"This is despite the fact that the use of free currency has been banned for parts manufacturers until yesterday, and it is not clear whether the decision will be subject to a new decision to liberalize the import of raw materials in free currency or not.” He said.
"Negotiations between carmakers and parts manufacturers are independent of the increase in car prices, as the raw materials for the auto and parts industry are in the hands of the government, and state-owned companies are supplying raw materials based on the FOB rate in the Persian Gulf and world prices.” He said.
"A 10 or 20 percent increase in car prices is no different for a parts maker, because with this price increase, the parts maker will not receive any income, and now that the limited price increase has been approved, the parts manufacturer must announce its final price announcement because it can sell. There is no lower price than that piece.” He continued.
"A review of prices since the beginning of October has shown an upward trend in prices. Meanwhile, a comparison of prices in February 2017 compared to the same period last year shows an increase of more than 80% in raw materials, while a comparison of March and May prices. A 30 percent increase in prices indicates.” He said.
"While the state-owned companies supply raw materials while on the one hand they are on fire to increase the price of raw materials, on the other hand they are preventing the final price increase of the final product, and the automotive and parts industry will be doomed to this policy.” He mentioned.
"40% of the cost of the car for bank interest rates is allocated to banks because the industry is always forced to obtain facilities from the banking system with the aim of providing liquidity. Therefore, the industry pays 25% and parts manufacturers 15% of the price of a car for bank interest. In this case, 9% is allocated to VAT and 6% to numbering costs, so taking into account these costs, 45% of the total car price goes to the carmaker. In this case, the carmaker suffers a huge loss and Blocking the parts of the parts maker will be done by the automaker.” He continued.
"Automakers owe about 280 to 300 thousand billion rials to parts manufacturers, and 80 thousand billion rials of this figure is overdue receivables, and it is not possible to continue working with these conditions.” He said.
In this situation, it is necessary for the Central Bank to formulate a clear mechanism as soon as possible or to introduce exporters with the aim of providing currency to parts manufacturers, because otherwise the life of the parts industry will face major challenges.
"The NIMA currency of the auto and part industries has been cut off since the beginning of this year, and parts manufacturers have not been able to receive the currency despite registering their orders, and they have been told to find an exporter and buy his export currency.” Mehdi Motaleb Zadeh, deputy manager of part industry association told khodrocar reporter.
"This is despite the fact that the use of free currency has been banned for parts manufacturers until yesterday, and it is not clear whether the decision will be subject to a new decision to liberalize the import of raw materials in free currency or not.” He said.
"Negotiations between carmakers and parts manufacturers are independent of the increase in car prices, as the raw materials for the auto and parts industry are in the hands of the government, and state-owned companies are supplying raw materials based on the FOB rate in the Persian Gulf and world prices.” He said.
"A 10 or 20 percent increase in car prices is no different for a parts maker, because with this price increase, the parts maker will not receive any income, and now that the limited price increase has been approved, the parts manufacturer must announce its final price announcement because it can sell. There is no lower price than that piece.” He continued.
"A review of prices since the beginning of October has shown an upward trend in prices. Meanwhile, a comparison of prices in February 2017 compared to the same period last year shows an increase of more than 80% in raw materials, while a comparison of March and May prices. A 30 percent increase in prices indicates.” He said.
"While the state-owned companies supply raw materials while on the one hand they are on fire to increase the price of raw materials, on the other hand they are preventing the final price increase of the final product, and the automotive and parts industry will be doomed to this policy.” He mentioned.
"40% of the cost of the car for bank interest rates is allocated to banks because the industry is always forced to obtain facilities from the banking system with the aim of providing liquidity. Therefore, the industry pays 25% and parts manufacturers 15% of the price of a car for bank interest. In this case, 9% is allocated to VAT and 6% to numbering costs, so taking into account these costs, 45% of the total car price goes to the carmaker. In this case, the carmaker suffers a huge loss and Blocking the parts of the parts maker will be done by the automaker.” He continued.
"Automakers owe about 280 to 300 thousand billion rials to parts manufacturers, and 80 thousand billion rials of this figure is overdue receivables, and it is not possible to continue working with these conditions.” He said.
In this situation, it is necessary for the Central Bank to formulate a clear mechanism as soon as possible or to introduce exporters with the aim of providing currency to parts manufacturers, because otherwise the life of the parts industry will face major challenges.
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