Iranian car part makers suffer from lack of investment

Business Materials 20 December 2016 19:23 (UTC +04:00)

Baku, Azerbaijan, Dec. 20

By Khalid Kazimov – Trend:

An Iranian car part maker has called for immediate investment in the industry, describing the situation as “dire”.

Arash Mohebinezhad, the secretary of an Iranian union of car spare parts makers, has said the country needs to invest two billion euros over the next one year to help the industry survive, Tasnim news agency reported.

The official added that the domestic investors are reluctant to put money in the car part making industry due to the dire situation of the producers.

Lack of funds has made the producers ignore the needs for increasing their technical knowledge and improving their equipment, he said.

Mohebinezhad noted that the 12-year sanctions inflicted a serious harm to the sector, so the government should back the producers to improve their situation.

He further touched upon the recent surge in the output of the Iranian carmakers, saying the recent increase in the home-made cars has not helped the car part makers as the leading car manufacturers have, so far, failed to pay off their outstanding debts.

According to the country’s economic development plan, Iranian carmakers are expected to produce three million cars per year by 2025.

In the meantime, the car part makers are projected to make $25 billion worth of car parts and export $6 billion worth of products.

Iranian carmakers manufactured over 820,000 cars over a period of eight months between March and November, indicating a rise by 35.9 percent year-on-year.