While the lack of liquidity in the automotive industry these days has severely disrupted the performance of the supply chain of this industry, automakers still consider bank facilities as the best way of financing, while one of the main reasons for the increase in their financial costs should be attributed to banking resources.
Khodrocar - These days, when automakers are struggling with billions in losses due to mandatory pricing, they are financed using a variety of methods that have achieved nothing but increase their financial costs.
In general, "advance sale", "immediate sale", "bank facilities" and "sale of surplus property" are among the main methods of providing liquidity in the Iranian automotive industry, some of which are permanent and certain and some Specific time periods are used.
At a time when the industry is severely underfunded, there is still room for new financing methods in the automotive industry.
"The financial structure of the country is based on trade and pays less attention to production and innovation issues. Due to this procedure, payment systems are not suitable for these measures and therefore the total financial costs increase, while domestic financial methods are not so diverse.” Amir Hossein Kakaei, expert of auto industry told khodrocar reporter.
"Recently, new financing methods have been introduced, but when used, it becomes clear that the same old methods are available, and for this reason, we will see an increase in financial costs again.” He said.
"The facilities received by this industry have become a heavy burden today, while wherever the industry has been able to provide liquidity through direct sales, it has not sought the resources of banks or various financial methods.” The expert says.
"Even at some point in time, the financial situation of the automotive industry was so good that it paid for the establishment and operation of the bank and facilities. In the meantime, the country has always been in a state of inflation, while the appropriate financial method of the industry Accept this industry and have a long-term view, usually in the world for industrial affairs, low interest rates are considered and collateral is received in proportion to the state of the industry.” He continued.
"The types of collateral in Iran that can be liquidated are very limited, while the level of intellectual property means the valuation of innovations that have not received much attention and use in Iran. At the same time, investing in projects, which is one of the financial derivatives, is not used much due to the complexity of the situation, so the industrialist prefers to use bank facilities with high profits instead of the complicated process of these methods.” He said.
"If the use of financing methods has recently been emphasized, it is not because of economic advantage, but because of the change in the result that the central bank has imposed on the automotive industry and is not necessarily in the interest of the automotive industry.” He mentioned.
"In the world, cheap facilities are traded because the profitability of the industry is limited, but the turnover it creates has a high value creation, a trend that causes governments to anticipate such policies, while always the car industry is viewed as a dairy cow, resulting in increased financial costs and ultimately high prices.” He continued.
"In the world, cars are cheap and their service is expensive, which is the opposite trend in Iran, and the older the car, the more subsidies are received from the government because cheap gasoline is consumed.” He said.
According to him, if product innovation and development in the automotive industry is to accelerate in the country, it is necessary to consider the method of financing projects.
In general, "advance sale", "immediate sale", "bank facilities" and "sale of surplus property" are among the main methods of providing liquidity in the Iranian automotive industry, some of which are permanent and certain and some Specific time periods are used.
At a time when the industry is severely underfunded, there is still room for new financing methods in the automotive industry.
"The financial structure of the country is based on trade and pays less attention to production and innovation issues. Due to this procedure, payment systems are not suitable for these measures and therefore the total financial costs increase, while domestic financial methods are not so diverse.” Amir Hossein Kakaei, expert of auto industry told khodrocar reporter.
"Recently, new financing methods have been introduced, but when used, it becomes clear that the same old methods are available, and for this reason, we will see an increase in financial costs again.” He said.
"The facilities received by this industry have become a heavy burden today, while wherever the industry has been able to provide liquidity through direct sales, it has not sought the resources of banks or various financial methods.” The expert says.
"Even at some point in time, the financial situation of the automotive industry was so good that it paid for the establishment and operation of the bank and facilities. In the meantime, the country has always been in a state of inflation, while the appropriate financial method of the industry Accept this industry and have a long-term view, usually in the world for industrial affairs, low interest rates are considered and collateral is received in proportion to the state of the industry.” He continued.
"The types of collateral in Iran that can be liquidated are very limited, while the level of intellectual property means the valuation of innovations that have not received much attention and use in Iran. At the same time, investing in projects, which is one of the financial derivatives, is not used much due to the complexity of the situation, so the industrialist prefers to use bank facilities with high profits instead of the complicated process of these methods.” He said.
"If the use of financing methods has recently been emphasized, it is not because of economic advantage, but because of the change in the result that the central bank has imposed on the automotive industry and is not necessarily in the interest of the automotive industry.” He mentioned.
"In the world, cheap facilities are traded because the profitability of the industry is limited, but the turnover it creates has a high value creation, a trend that causes governments to anticipate such policies, while always the car industry is viewed as a dairy cow, resulting in increased financial costs and ultimately high prices.” He continued.
"In the world, cars are cheap and their service is expensive, which is the opposite trend in Iran, and the older the car, the more subsidies are received from the government because cheap gasoline is consumed.” He said.
According to him, if product innovation and development in the automotive industry is to accelerate in the country, it is necessary to consider the method of financing projects.
Latest News
