EghtesadOnline: Domestic auto production has plunged markedly with companies producing 721,363 cars and commercial vehicles during the eight months to November -- a 24.9% year-on-year decline.
According to the Ministry of Industries data, during the period the number of cars made in Iran plunged from 900,546 last year to 674,947 units, a 25.1% Y/Y fall.
The situation is worse when the production of commercial vehicles is accounted. During the same period 4,904 trucks, buses, minibuses, and pickups were manufactured -- down 47% compared to last year.
Following the re-imposition of US sanctions, the Iranian economy has tanked with the national currency losing more than 60% of its value this year. The industrial sector is believed to be hit the worst due to its dependence on imports and the increasing reluctance of foreign companies to sell to their Iranian peers fearing the wrath of the US administration openly hostile to Tehran, according to Financial Tribune.
Despite the fact that senior officials in Tehran often promise to weather the storm and put the struggling economy back on track, data released by government organizations show that the conditions are deteriorating.
New data shows that during the month to Nov. 21, production of domestic car companies stumbled further -- from 135,402 to 57,627 units, down 57.4% Y/Y.
During the one-month period, the number of cars made in Iran fell from 126,135 units last year to 52,723 this year, a sharp 58.2% Y/Y fall. In short, daily output shrunk from 4,204 cars to 1,757.
Again the situation is worse for commercial vehicle companies. Bus manufacturers are in a terrible situation. During the month only 1 bus was made in Iran down from 163 units made last year!
As expected, the two main auto companies, Iran Khodro and SAIPA, are in disarray with the two respectively reporting 30.4% and 23% decline in production.
During the eight-month period, IKCO’s total production slumped from 453,627 cars and commercial vehicles made last year to 315,757 units this year -- a steep 30.4% Y/Y fall.
Data shows that IKCO produced 308,420 cars during the period, indicating a 30.8% decline.
In one month that ended on Nov. 21, the firm’s output sank further from 60,593 last year to 23,499 cars, a 61.2% year-on-year drop. The company’s daily output declined from 2,019 cars to 783 units.
IKCO’s main rival SAIPA too is facing hard times. Over the eight-month period, SAIPA churned out 313,290 cars and commercial vehicles, -- a 23% decline compared to its output of 406,718 units during the corresponding period last year.
In the month ending Nov. 21, SAIPA reported 58.6% fall in output by making 25,258 cars and commercial vehicles. Production at SAIPA plummeted from 55,545 units last year to 22,628, a 59.3% decline. Daily production of the second largest car company has dwindled from 1,851 to 754.
While most companies are quick to point the finger of blame towards US sanctions and pile blame on President Donald Trump, independent observers say mismanagement at SAIPA and IKCO has also had a terrible negative impact on the key industry.