TEHRAN,Iran, May 31
Trend:
Profit sharing model for Iran's automakers in production would help attract more investments, local car industry expert Amir Hossein Kakaie told Trend.
"The officials currently have various ideas, most of which aren't new, they've been previously discussed," he said.
"When carmarkers set pre-sale prices, it should be take into account money paid by customer and the interest rate for the given amount until the delivery date," he said.
Kakaie said the profit-sharing in production plan, which allows a customer to become a partner in production of a vehicle.
"For example if vehicle is delivered after six months, the customer would also share the profit from the sale. Although the plan should also consider the losses of partnering," he said.
"The difference between this production plan and pre-sales is that the type of vehicle should not be specified, so buyers and automakers should share the profit and losses. Although in Iran partnership is only for gaining profit, so partnership in production is more logical," he added.
"Usually the interest rate with pre-sales is 18 percent. That is two percent more than a bank's rate but it's possible that the profit of partnership be lower than pre-sale interest," Kakaie said.
"Since the pre-sale mechanism has certain limitations, automakers have suggested the profit-sharing plan in production," he added.
"The precise interest rate of for the profit-sharing model hasn't been specified so far, the usual rate is of bank interest rate in addition to 2 percent to attract more people," he added.
Kakaie said the SAIPA Group carmaker announced a 27-percent interest rate for the profit-sharing model in recent years, but the company has been facing heavy losses since then.
"So far no particular details have been announced about the plan," said the analyst.
Iran Khodro Industrial Group (IKCO) has produced 51,455 vehicles from April 20 till May 21, which is more than in the last Iranian year (began March 21,2019). The company is expected to implement a pre-sale lottery due to high demands.