What is the root of auto industry loses/ officials talk about the reasons

Khodrocar - It was in the middle of this summer that Abdullah Tawakuli Lahijani, the Director General of the Automotive Industries Office of the Ministry of Industry, announced in an official letter on the topic of "Reviewing the source of foreign exchange" addressed to the three associations of automobile manufacturers, motorcycle manufacturers and bicycle manufacturers in order to deepen the domestic manufacturing sector, so that the companies think more domestication and asked the associations of the mentioned industries to think about exporting to provide the needed foreign currency or to provide their needed foreign currency from other exporters.

This was the case when car manufacturers did not have much of an export market in the field of exporting their products, in addition to the restrictions caused by sanctions, and even the neighboring countries had repeatedly returned the export shipments of Iranian cars for several reasons. The parts industry has a similar situation, but in the past years, despite the demands of thousands of billions of tomans from car manufacturers, this industry kept its face with a red slap, but still, there was not much export market available for Iranian parts, so the government decided By providing raw materials and raw materials to the car manufacturers, it will pave the way for their export so that the car manufacturers can get an income from this place. 

Therefore, the car manufacturers sold these materials at the global FOB price and in some cases even higher than that in order to provide liquidity, which caused the dissatisfaction of some parts manufacturers. However, the government declares that although this rent has been provided for the automobile industry, such rents should be removed from the automobile industry as soon as possible in order to witness a competitive product, because according to the officials of the Ministry of Industry, the main root of the recent losses of automobile manufacturers is the price. It was not an order and a set of these factors along with the neglect of product development has led to such a situation.

Abdullah Tawakli Lahijani, Director General of the Automobile Industries Office of the Ministry of Industry, Mines and Trade, in an interview with Khodrokar reporter, emphasizing that the export of raw materials should be used as a competitive advantage, says: if there is a relative advantage in some areas, it The comparative advantage should be given to production and complex goods. 

Some of these things, such as providing foreign exchange from the place of export, may be due to the policies of the central bank and other institutions involved in the issue, but in general, we believe that car manufacturers should be rent-free in relation to production. competitive products, because the root and main problem of the automobile industry is to make this industry competitive.

In response to the question that despite the loss of 45 thousand billion tomans of this industry, how can it be possible to eliminate the rent of this industry, he adds: we need to see what the roots of this loss were and within what period of time it happened? And was this loss due to the conflict of interest that the component manufacturers had in this area or not?

Tavakli Lahijani continues: Undoubtedly, the loss of car manufacturers is not only due to mandatory pricing, and if the game of mandatory pricing prevents proper sales, we can think about the export markets, so we do not see the main root of the loss in mandatory pricing, but the root The main one is not having a competitive product that cannot be exported to the markets.

The Director General of the Office of Automotive Industries of the Ministry of Industry, Mines and Trade cites an example in this field and states: If Hyundai enters a market that has mandatory pricing and is therefore unable to compensate for its costs, it will definitely enter the market. The other one is expanding the export markets, so one should not only look at the signs and symptoms of a problem, but also know the root cause of that problem.

  He says: the management mechanism of car manufacturers, the conflict of interests with car manufacturers, the relationship between the parts manufacturer and the car manufacturer, neglecting the area of product development and having local platforms in hand, and how to interact with manufacturers from this point of view that some parts are ordered from 4 different manufacturers. that this leads to lack of economic circulation and non-competitive product production,