Accumulated loss of Irans car industry stands at 174,000 bln tomans

According to The Iran Project, examining the financial statements of the country's three largest car manufacturers indicates that their accumulated losses for 9 months this year (Iranian calendar year starts March 20) amounted to 44.9 thousand tomans, which brought the total accumulated loss to 174 thousand billion 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

Accumulated loss of Iran's car industry stands at 174,000 bln tomans