TEHRAN, Iran, Sept. 21
Trend:
Iran needs new investments to increase its auto production, said Saeed Madani, former director general of one of Iran's largest car manufacturers - SAIPA Group, Trend reports via IRNA.
Madani has indicated that Iran's current annual auto production capacity is about 2 million vehicles.
He noted that Ministry of Industry, Mine and Trade's plans for production of 3 million vehicles until 2025 are achievable, but new investments are needed.
"Auto makers do not have possibility to expand due to lack of liquidity. Unless they ask for financial aid from the National Development Fund or long term advances from banks, but both options are time-consuming," he explained.
Madani said that creating safe economic atmosphere could attract foreign investors and even investment from Iranians living abroad.
Real pricing for domestic vehicles might reduce demand but it could protect installment sales and leasing, he said.
Madani noted that the regulations need to be reformed for participation of foreign and domestic investors in Iran's auto industry, while policies for increasing production, auto export, expanding products and sale should be drafted based on the current market realities.