Tuesday, 21 September 2021 11:32 GMT

Iran's car industry dealers wait for Vienna talks outcome


(MENAFN- Trend News Agency ) TEHRAN, Iran, Aug.2

Trend:

Iran has high capacity to produce car parts, and if the Vienna talks reach a result, the Islamic republic could count on investments and possibly joint production, Head of Iranian Association of Auto Parts Manufacturers Mohammadreza Najafi-Manesh told Trend .

"We are currently waiting for the outcome of the Vienna talks, and resume auto and auto part production," he said.

"Iran had joint cooperation with other countries in the past but thanks to sanctions, the investments for joint production were halted, and the companies that came to Iran, left afterwards," he said.

"Iran has high capacity to produce auto parts, the current issue is liquidity, auto manufacturers deliver the parts to automakers but do not receive the money on time. This pressures the production," said Najafi-Manesh.

"The issue of liquidity is caused by ordered pricing and prices that are set on vehicles by the government," he said. "This creates losses for automakers, so they don't have liquidity to pay for the auto parts," he noted.

"The issue was discussed during a recent meeting with the Minister of Industry, Mine and Trade and his deputy," he said.

"If the new government removes ordered pricing, domestic auto part makers will start making a profit," said Najafi-Manesh.

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