Challenges of Private Sector Presence in Auto Industry/ The Car Industry Needs a Third Pole?
Most of experts believe that entrance of private sector could unlock the tie of exclusivity and competition in auto industry but entrance of them is challenging for this industry.
Khodrocar – about 10 years is passing since the government recommend the entrance of private sector in auto industry even last year, Mohammad Shariatmadari, former minister of industry said we can have a third major automaker in the country alongside SAIPA and IKCO.
Some believe this is a challenging industry and macro politics are changing in this industry every 8 years. On the other side, existence of two major automaker and the support of government has made exclusivity and entrance of private sector to auto industry is just a motto but they are not putting effort for it.
On the other hand, some experts say that entrance of private sector into auto industry is costly and one of their challenges is financing projects so their presence would be too hard. Also, they don’t have the technology and should pay a lot to launch a production line.
Although presence of private sector in auto industry could break the exclusivity and make a competitive market but for this matter we need governmental support and should make a consortium then we can be hopeful to see a real competitor for major automakers of these days.
Some believe that if private sector enters the auto industry then they can increase the efficiency and develop the business and even they may answer the market demand better than two major companies.
"Entrance of a third major into auto industry is not logical. We have them right now because we can name Bahman and Kermen Moter.” Amir Hossein Kakaei, an expert of auto industry told Khodrocar reporter.
"About 30 other companies are producing car in the country and we don’t have this problem because in the past we have Pars Khodro which was independence. The government shouldn’t interfere in auto industry because if the third major company launch with governmental money then they would be governmental again.” He added.
"Nowhere in the world you will find little automakers but industrial companies have 1 to 3 major automakers but in Iran this industry doesn’t have any particular plan.” He said. "Most automakers have nice interaction with each other, they have limited production and free market. They also prevent exclusivity and increased the competition.”
"No model in Iran will meet the mass production and even major auto makers of the country don’t have the technology and finance. " He said.
Khodrocar Reporter: Hadi sianaki
Khodrocar Translator: Amin Zamani
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