Auto Parts Localization Prevents Capital Flight Worth Over €130m

Major Iranian carmaker Iran Khodro Company (IKCO) has curbed capital flight to the tune of €137 million through the localization of 54 auto parts in the first six months of the current Iranian year (March 20- Sept. 21), a senior company official said.
Hamid Moradi, IKCO’s deputy executive manager, noted that this has been accomplished, thanks to the support of industrial units affiliated to the Defense Ministry and knowledge-based companies, the company’s website Ikcopress.ikco.ir reported.
“This is part of efforts to gradually slash the capital flight caused by auto parts imports. The sum can reach €248 million annually,” he said.
Moradi noted that the implementation of projects will save another €13 million for the company in the second half of the current year, reducing IKCO’s annual capital flight down to €150 million this year, which used to exceed €300 million.
Highlighting IKCO’s productivity enhancement during the current year’s first half, Moradi said the automaker has raised output by 52%. 
“During the period, over 248,000 sedans were produced and 207,000 have been delivered to customers. IKCO’s delayed deliveries have reduced from 186,000 to 30,000 vehicles,” he said.