The Iran Project
: While Iran's car industry is suffering from inefficiency and lack of effectiveness and as a result unproductivity, their declared reports of their financial statements show new records of accumulated losses.
Monday 29 January 2024 - 20:50
Story Code : 413683
Source : پروژه ایران
Accumulated loss of Iran's car industry stands at 174,000 bln tomans
The investigation of the losses of car manufacturers in the 3 months of autumn has shown a total of 10,600 billion tomans of losses have been added to the accumulated losses of car manufacturers.
Based on this, the accumulated losses of Iran Khodro (Iran's largest automaker) have increased by about 7,000 billion tomans, Saipa (second-largest automaker) by about 2,600 billion tomans, and Pars Khodro (third-largest) a little over 1,000 billion tomans.
High cost of automobiles a cause of loss
In an interview with The Iran Project, Ebrahim Shojaat, an Iranian car expert, referred to the high cost of Iran Khodro and Saipa products and said, "Comparing the cost price of these products and the price they are offered in the market, has depicted that these industries are unprofitable."
Also, with the reports published by Iran's Securities and Exchange Organization on Codal.ir, it is possible to realize the high losses of these industries in the country, he added.
Recently, Codal.ir announced the loss of automobile manufacturers at 174,000 billion tomans, he stressed.
Touching upon the reasons behind the inefficiency of these industries, he noted that the high cost of Iran Khodro and Saipa products is due to the command pricing of their products as well as the intensification of sanctions since 2018.
The shares of Iran Khodro and Saipa are both public, and the effects of their profits and losses can be seen on all its shareholders, in other words, the loss of these industries also causes losses to its owners and shareholders, the car expert stated.
The unprofitability of automobile manufacturers is not a correct claim and has no scientific basis, Shojaat concluded.
Previously, some experts had said that the claim of loss-making of car manufacturers is false and the profits of these industries are spent on other non-economic matters.
Translator : Fatemeh Khoshroo
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