Will car production increase in the coming months?

According to Tejarat News, during an intrusive visit to Iran, the President ordered eight cars, one of which was to increase the production of car manufacturers.

Minister Samat also said in an interview: “This year, the production will be less than one million units, which next year should be one million and 500 units, and Saipa and Iran Khodro car companies should have a monthly and even weekly plan to make plans and forecasts.” Has been.

He added: “We do not have a problem in the production of engines, bodies and paints, and we do not have hardware restrictions for the production of more than 1.5 million, but we must create and manage order in the chain and production.”Tasnim)

He had also previously stated that car prices should be reduced by 15%.

Will the promise of increasing car production be fulfilled?

The remarks of the Minister of Silence and the President were criticized. Given the accumulated losses of these two automakers and the weakness in the quality of their products, do the promises of the authorities have the capacity to be implemented?

In an interview with Tejarat News, Babak Sadraei, an automotive expert, said: “The implementation of this decree depends on factors.” One of the main factors is the lifting of sanctions. With the lifting of sanctions, car parts will enter the country more easily. As a result, the variety of products increases.

He added: “If the increase in the variety of products in Iran, Khodro and Saipa is accompanied by an increase in quality, it will definitely be effective.” But if production increases with the current quality, it does not seem to have a pull in the market.

The car expert further explained: Minister Samat ordered a 15% price reduction. But it should be noted that simply increasing production does not reduce prices. Rather, the main issue is the price of the dollar, the costs that sanctions impose on the automaker, and transportation.

“There are also global factors related to car production,” Sadraei said. Due to rising oil prices and transportation costs, the cost of producing cars in the world has also increased.

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