The difficult way to reduce valuation in the automotive industry

Khodrocar,One of the achievements of the devaluation in the automotive industry is the reduction of the cost price of domestic products because similar domestic products have become a substitute for imports and can reduce the cost price of products. Javad Soleimani, CEO of Saipa Automotive Group, also mentioned this issue and emphasized that currently the production of each car has a value of two thousand dollars. The plan of this automotive group is to reduce the value by relying on concluding a cooperation agreement with the defense industry.

But at the same time, there are statements about the lack of effect of internalization on the cost price, in this regard, Mahmoud Karimi Sanjari, an expert in the automotive industry, in an interview with Khodrocar reporter, emphasizing that the decrease in valuation necessarily leads to a decrease in cost price. "Currently, the automotive industry is struggling with currency restrictions, and this limitation of dependence and purchase from a specific country can only be seen in the Iranian auto industry, so this industry is struggling with two restrictions, international and currency," he said.

He adds: "In a situation where there are restrictions on foreign communications, executive policy to reduce foreign dependence and a special thinking of self-sufficiency to be implemented, in this view, the issue of car economy is less considered but more aimed at reducing the value and supply of parts." From within, it is not because of the reduction in price, but because of sanctions and the impossibility of supplying parts from abroad.

Karimi Sanjari states that with the decrease in foreign exchange earnings, the country's foreign exchange dependence should be reduced: this strategy is more a political strategy than an economic one; Because a reduction in valuation does not necessarily lead to a reduction in cost. Although the manufacturer may provide parts to the automaker at a much lower price, a reduction in valuation will certainly not lead to a reduction in cost, even if the exchange rate is very high. is up.

The automotive industry expert emphasizes that just as calculating the cost price is not an easy task, reducing the valuation is not an easy task, he continues: During the previous ministry, the valuation of 300 million euros in the automotive industry was emphasized, but further investigation shows He said that car manufacturers have outsourced parts supply to component manufacturing companies and these companies have also started importing parts instead of domestic production, in which case we have witnessed a decrease in valuation in the automotive industry if there has been no decrease in total.

He continues: "Although a large part of the parts were imported and produced, which reduced the valuation to some extent, but did not reduce it to zero, so the difference is not clear, because when a part is supplied from abroad, it may be in another country with Lower production costs, while domestic production costs, despite the economic justification in domestic production, but due to poor automation, poor equipment and reduced productivity and overhead costs, is very high. Finally, the price is over. It depends on indicators that valuation is generally not one of these indicators.

An examination of these statements shows that the way to save the automotive industry from reducing overhead costs and ultimately costs will not be localization, but it is necessary for industry managers to seek to improve production processes, increase circulation and reduce production costs to be able to Reduce the cost.