EghtesadOnline: In ten months to Jan. 20 auto production in Iran plunged by 35.4% compared to the year earlier.
Data published by the Industries Ministry show that during the period 812,979 cars and commercial vehicles were manufactured, indicating a 35.4% drop compared to 1,257,676 units made in the same period a year earlier.
Furthermore, 758,128 passenger cars were manufactured in the 10 months — indicating a 35.7% year-on-year decline. In the same period one year ago 1,179,186 cars were made and sold.
Likewise 54,851trucks, buses, minibuses, and pickups were made in the ten months -- 30.1% down YoY compared to 78,490 units produced last year, according to Financial Tribune.
The new unilateral US sanctions, plus Washington targeting the auto sector and intimidating foreign partners of local firms to end their cooperation in and with Iran, have taken a toll on the key sector.
The economy is facing major challenges for a variety of reasons, not the least of which is the growing US hostility loaded with a variety of restrictions on Iran’s oil exports and the banking, insurance and transportation sectors.
The national currency went into freefall almost a year ago and has lost 70% of its value. Tanking of the rial has had a major negative impact on the auto companies’ ability to import key parts and raw materials from international suppliers.
A closer look at the numbers shows how rapidly the situation is deteriorating. In the Iranian month that ended in late January, 50,972 vehicles were produced, indicating a 66.3% YoY decline compared to 151,291 units a year earlier.
Iran auto industry’s daily output has nosedived to 1,699 units from 5,043 last year.
The latest figures show only 46,472 passenger vehicles were made in the ten months compared to 141,812 units last year – down by a whopping 67.2%.
The main carmakers, Iran Khodro and SAIPA, reported steep declines in output.
In the 10-month period to Jan. 20, IKCO’s output plunged to 358,980 cars and commercial vehicles, 39% lower than 588,858 units made last year.
In the Iranian month ending on Jan. 20, statistics show 66.3% decline in IKCO production as output dropped to 23,027 units from 68,378 made in the same month a year earlier. Daily output has fallen, as never before, to 767 units from 2,279 last year.
IKCO’s archrival, SAIPA is also in serious trouble. Its 10-month output fell by 34.6% YoY from 539,341 units last year to 352,837 now.
In the month ending on Jan. 20, SAIPA made 23,975 cars and commercial vehicles, down 64.7% compared to 67,936 units last year. SAIPA’s daily output has dropped to 799 units compared to 2,264 it produced in one day a year ago.
Independent observers say in addition to the US sanctions, gross incompetence of managers plus lack of professionalism and effective oversight has taken a toll on the industry that has apparently long lost its usefulness.