TEHRAN, Iran, August 31. Iranian automakers are faced with rising debts to auto part makers, the Managing Director of Azin Khodro Company Reza Rezaei told Trend.
The liquidity in business is an important factor that has been affected by the fluctuation in the foreign exchange rate, he said adding that all these issues are stemmed from sanctions.
Rezaei underlined the policy of parliament and the Ministry of Industry, Mine, and Trade for controlling auto prices has gradually led to mass losses in the industry.
He pointed out that two Iranian auto companies have about 100 trillion rials (about $23 billion) debts to banks and their debts to auto part makers have consequently increased.
Debts of automakers including Azin Khodro, a major Iranian automotive company is still high, he noted indicating that current debts to auto part makers are 45 trillion rials (about $10 billion).
Rezaei stressed that Iranian auto part makers produce modern products and have no issue with mass production. Any auto part shortage in the market is related to imported parts.
According to the official, banks and the capital market can support auto part makers as a priority that could lead to high-quality products.