Khodrocar - The localization movement, the fourth round of which has just ended, has entered the implementation phase with the aim of reducing dependence on imports and also saving foreign exchange. Explains why the automakers' currency dependence has not only not decreased during this period, but the need to increase prices in this industry will be more urgent than ever. Based on this, has the implementation of the internalization movement been an economic task from the beginning?
"The pricing of raw materials required by the automotive industry, which are produced by domestic manufacturers, is based on the FOB Persian Gulf, with free currency, in these circumstances, along with the increase in the price of currency, we are also witnessing an increase in the price of raw materials for domestic production.” Mehdi Motaleb Zadeh, Responsible for the Internal Construction Committee of part industry union told khodrocar reporter.
"In these circumstances, car sheets, which were bought and sold at a price of 5,000 Tomans last year, have reached 18,000 Tomans this year, and it is natural that the product that is produced with these materials will be accompanied by an increase in price.” He said.
"Meanwhile, the internalization tables of parts, of which 4 tables have entered the implementation phase so far, have not been put into operation yet, while in single parts, some items will not be economical to produce at all, for example, only a few in the whole world. Limited Company has started to produce electronic parts and by exporting this part, the whole world has eliminated the need for its domestic production, so the localization of these parts is not on the agenda.” He added.
"At the same time, some steel parts that domestic steelmakers cannot produce domestically are also on the list of parts that are always supplied through imports, so no country in the world can claim 100% self-sufficiency and completely domestic production.” He said.
"According to initial forecasts, 5 localization tables were to be formed, but according to the latest decision, these tables were to continue until self-sufficiency in the production of more parts, however, parts that are produced domestically are economical. It is not economical, it has never been localized and it will continue to be supplied through imports.” He said.
"Currently, 150 pieces and sets of parts have been internalized with a contract worth 4,460 billion tomans in the form of 4 tables, which has resulted in a total decrease of 341 million Euros in foreign exchange. The calculation of these numbers shows that the average price of Euros in the movement Internalization has cost 13 thousand tomans, which shows the high value of the domestic construction movement.” He said.
"If we talk only about the price of cars and the effect of the localization movement on it, this claim is true, because if the raw materials are provided to the car industry at government prices, the costs will undoubtedly be drastically reduced and prices will be close to the floor.” He called.
"Everything should be done in parallel, and even this request is given to the officials, when the pricing of the product is ordered, the price of the imported raw materials is also ordered, so the price should be set at the margins of the market. According to the statistics of the amount of cars sold at the ordered price, the difference between these cars and the price of cars in the market has reached 50,000 billion tomans. It means production for intermediaries.” He said.
According to him, many parts of the first and second tables have reached mass production and entered the production lines and their import has been stopped. The third table, which includes electronic parts, will also be produced this year. Many of the 150 internalized parts will enter the mass production phase, the effects of which we will see in the automotive industry next year.