Tehran, Iran, Sept.30
Trend:
Iran intends to import auto parts from Russia, and there have been negotiations with two Iranian auto makers in this regards, said the secretary of Iran Vehicle Manufactures Association Ahmad Nematbakhsh told Trend in an interview.
"In regards to the renovation of the transportation fleet, the president has stated that Iran wants to renovate the country's cargo and passenger vehciles. After the Trump administration imposed sanctions, Chines companies refused to provide auto parts to Iran, but a Russian company is inclined to provide them to us," he said.
The official emphasized that the Industrial Development & Renovation Organization is following the issue. "We should move toward merging auto manufacturing so that the domestic productions will have economic benefits. If Russian vehicles and auto parts are imported to Iran, it means cooperation between Russian companies and a domestic auto makers," he said.
"Due to lack of liquidity in SAIPA and Iran Khodro companies, the domestic auto part situation caused heavy costs for automakers. Currently, there is not enough domestic auto parts production," he added.
"The auto production in past five months decreased by 22 percent drop due to lack of liquidity. Two major auto makers in Iran have announced in June that they had $1.9 billion loss, and auto parts makers have faced similar losses," he said.
"The prices were also suppressed by the market and have not allowed domestic vehicles being sold by their real price. I have asked first VP Eshagh Jahangiri that there should be financial compensation for the loss of these two companies. It means if the government sets the price of a commodity lower than it's real value, then it should pay for the loss of producer," he noted.
Nematbakhsh went on to say that so far, the government has not compensated the loss.
"No efficient bank loans were provided to the auto makers either, so the auto part makers are demanding auto makers to pay their debts, while the automakers have no money due to their losses," he said.
"The auto price difference in production and market is significant. [The pricing] should be based on free market prices so that the profit goes to the producer who is the tax payer and not to a dealer," he added.
"The producers around the world set the prices by themselves, but it's different in Iran. We want the government to permit liberation of auto import tariffs," he said criticizing the government auto pricing policy.