Is it possible to increase car production 1.5 times?

Online Economy – Parham Karimi; In a televised interview, Fatemi Amin said that with the 50 percent increase in car production as well as the liberalization of imports, the car lottery will be phased out from next year. These remarks have raised many questions in the minds of car activists, given that no precise plan has been announced for it. Online Economy In a conversation with Milad Beigi, an automotive industry expert, he tried to find a plan for these claims and an answer to some of the various questions of the activists in this field.

The question for many experts is how the automaker, which has not even been able to implement its plan for the year 1400, and in a situation where the corona epidemic as well as global political conditions disrupt the supply chain and the world’s major automakers are announcing the possibility of reducing production , Wants to not only maintain but also increase its production. Milad Beigi says in this regard: “The main challenge of our production in the current situation, given that we did not reach the target point this year, is the problem we have in supply chain supply. There is currently a crisis in the demand for electronic chips in the world, and this problem is not only related to Iran, and any plan to increase production is based on knowing how to act in this regard. “Unless a significant part of our production is based on car assembly, in which case we will not be able to assemble a car in the country and we will need other programs.”

Beigi also added: “Mr. Minister, from the beginning, they discussed the increase of circulation. But there are challenges that have not been addressed. “It is important that the increase in production has crises that require newer programs, which have not been discussed so far.”

Perhaps the most important claim of Fatemi Amin in this program is to remove the lottery from the registration process for cars, which is promising for the people next year, considering the series of problems that exist in the car industry and in the management system of this field. It does not convince experts in this field without presenting a written and practical plan.

The problem with eliminating this rent-seeking process is the price tag, which is why the factory selling price of most car models is lower than the cost of that car. Also a large rent that has created a price difference between the factory and the market. For example, we can refer to Iran Khodro’s registration and sales statistics. Despite the fact that according to the officials, the annual demand of the car is one million and 500 thousand units, but on average, three million applicants register in each stage of immediate sale; That is in a situation where Iran Khodro offers only about 10 thousand cars on average at each stage

Asked if the dream of eliminating the lottery was possible, Beigi told Eqtesadonline: “The problem with the lottery is that the prices are far from the market prices. These prices are below cost in some cars; The important question is how to eliminate the lottery? Eliminate grammatical price or increase grammatical price. “Each of these cases, if implemented, requires executive considerations, and in the end, the pricing issue must be resolved.”

Milad Beigi acknowledged that domestic automakers have not even been able to produce one million and one hundred thousand: “We need serious planning and the plan determines whether we can go in this direction or not. “In the minister’s plan, our production level was supposed to be one million and 100, which I do not know will reach 900 thousand.”

With all this said, we have to wait and see if the Minister is willing to present his plans to make his dreams come true, or he continues to say things in conferences and interviews that many dream experts think.