Industries Ministry Warn Carmakers Against Hoarding

EghtesadOnline: As accusations against Iranian carmakers pile over the alleged hoarding of vehicles, the Industries Ministry has cautioned major auto firms to avoid shady practices and fall in line.

News ID: ۷۴۷۷۳۸

02 July 2019

Jafar Sarqeini, a deputy industries minister, pointed to aerial pictures of the premises of local automotive company Iran Khodro (IKCO) published by the judiciary-affiliated news website Mizan that shows thousands of cars gathering dust, Mehr News Agency reported.

“Industries Minister Reza Rahmani has warned carmakers against hoarding and demanded that cars should arrive in the market as soon as they are produced,” Sarqeini said.

The firm has been accused of hoarding by local media. Similar allegations have been leveled against SAIPA, according to Financial Tribune.

Earlier in a statement, the Industries Ministry had dismissed the accusations against IKCO, saying that the vehicles cannot be delivered due to lack of "high-tech" auto parts needed for completing the cars.

However, in the face of mounting pressure from the general public, government entities are poised to lay the blame at automakers’ feet.

Over the past few months, extensive disruptions in the auto supply chain have derailed Iran’s car market with prices observing several unprecedented hikes in a short span of time.

Data released by the Industries Ministry reveal that in the last fiscal year (ended March 20, 2019), 955,923 cars and commercial vehicles were produced in Iran, indicating a 37.8% year-on-year decline.

Currently, the cheapest vehicle in Iran’s auto market, SAIPA’s Pride, costs 510 million rials ($3,800), which would not have fetched 200 million rials ($1,500) a year earlier.