Iran's auto sector: state-owned car makers in debt, market falling
Tehran, Iran, Jan.25
Head of Iran Auto Parts Manufacturers Association (IAPMA) announced that the payback period for car makers has risen to more than eight months, but they still expect car parts to be delivered to one third of the cost.
"Today, except for a few huge domestic car part makers, others in the industry are not in good position,” Head of Iran Auto Parts Manufacturers Association (IAPMA) Reza Rezaei said, Trend reports citing IRNA.
He went on to add that during the last three years, some 37 percent of workers of Iran's auto industry have become unemployed.
"The continuation of the existing situation will cause a reduction in productivity, reduction in quality of production, the halt of modernization and the depreciation of new technologies,” he said.
"We do not deny the impact of US sanctions on this industry, but sanctions wouldn't have been effective if there were proper laws and balance regarding production in the country," he said.
“Car and car parts manufacturing are strategic industries in all the countries that own these industries, as they play critical role in increasing the GDP, activating mother industries, sustainable employment, exports, and overall economic development,” said Rezaie.