Iran Auto Sector Losses Reach $1.36b

Auto Sector Losses Reach $1.36b
Auto Sector Losses Reach $1.36b

Iran’s ailing auto sector lost 300 trillion rials ($1.36 billion) in revenue during the last Iranian year (ended March 20, 2021).
Announcing the above, Soheil Memarbashi, the head of Transportation Office at the Ministry of Industries, Mining and Trade, said the combined revenues of the two major automakers, Iran Khodro Company (IKCO) and SAIPA, hit 1.5 quadrillion rials ($6.81 billion) last year, but they also accumulated massive losses, ILNA reported.
According to the official, IKCO and SAIPA have accumulated losses to the tune of 180 trillion rials and 120 trillion rials ($818.18 million and $545 million) respectively. 
Memarbashi said Iran's automotive industry is a critical sector, as it accounts for 18% of the country's GDP, that’s why poor decisions for the sector can have far-reaching consequences.
“Considering the negative impacts of US sanctions on the sector’s interactions with foreign partners, Iranian automakers have been struggling to stay afloat,” he said.
“Considering their losses and increasing production costs, automakers will soon become unable to continue their operations unless car prices are updated by the Competition Council.”


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