Can Automakers Fulfill Larijani’s Conditions?

KhodroCar - The speaker of the Islamic Parliament of Iran, Ali Larijani, announced 4 new condition for automakers, which are increasing the quality and paying more attention to high quality products, having a clear plan for developing production, developing the R&D and privatization of the auto industry. Also, he emphasized on expanding the auto parts export.

"Auto industry would develop and grow if we have a real privatization. Right now, we have to restart the process of privatization because it had problems in the past. IKCO should tell its plan for the full privatization and IDRO have to take a decision for its stocks." Said Larijani. "If we want to develop, we have to care about production and export. Meanwhile, the parliament would give a priority to any plan of production and export prosperity in the next fiscal year budget."

"The government's share of two major Iranian automaker should fall to zero and we have serious plans for it." Said the minister of Industry, Mine and Trade, Mohammad Shariatmadari.

"IKCO is the leader of automotive industry in Iran as it has more share of production, but the history is showing that we could do better in this industry and we hope to be better in the future with a good plan . The government's share in the auto industry should be falling to zero and we have a strong plan for privatization of IKCO and SAIPA and we are not agreeing to semi-privatize at all."

Now, it is a question that does the share of the government from auto industry decrease and auto industry go toward privatization? Will Larijani conditions fulfilled?

"Conditions of the speaker of the Islamic Parliament of Iran could be summarized in one note which all the connections between automakers and the government should cut off." Said Saeed Bastani, a member of Industrial and Mines commission of the parliament. "The auto industry must disconnect from the government to improve, otherwise nothing will happen in this industry."

"This will cause the multi decisions by the automakers and on the other hand, high costs of the automakers will add to the final price of products." He added. "Low quality cars are signs of the monopoly in the market and it shows the support of the governments."

"When an automaker has no power to choose the Chairman and the government will choose it for them while they have less than 20 percent share then the result is what we all seeing now.” Said Bastani. "By privatization, the quality will improve faster and then joint ventures and scientists will take the control and automotive industries will develop.”

KhodroCar Reporter: Negar Mirkarimi

KhodroCar Translator: Amin Zamani