A total of 69,949 vehicles were produced by the two main domestic automakers SAIPA and Iran Khodro Company (IKCO) in the current fiscal year’s eighth month (Oct. 23-Nov. 21), but only 58,872 vehicles were completed and sold.
A look at domestic statistics indicates that a large number of vehicles remained incomplete, mainly because automakers faced payment problems with auto parts manufacturers that consequently failed to supply the needed auto parts.
Parts Manufacturers’ Woes
Domestic automakers were unable to fulfill their production obligations because of problems with auto components and parts producers, which can lead to major production problems in the future.
“Delays in updating car prices, while adding to the automakers’ liquidity problems, also increased the auto parts manufacturers’ dues,” Siamak Moqtaderi, a member of the Association of Homogeneous Propulsion Industries and Auto Parts Manufacturers’ board of directors, told Khabar Khodro.
While stating that parts manufacturers do not comment on changes in car prices, the official said, “What is important for components and parts producers is a fair adjustment of parts prices and prompt payment of their dues.”
Moqtaderi noted that liquidity problems are a main barrier to new investments, machinery upgrades and technological improvement, which cause quality problems in auto components and parts.
Earlier, Maziar Beiglou, secretary of the Association of Automotive Parts and Components Producers, had declared that domestic auto manufacturers owe a whopping 36,000 billion tomans ($1.2 billion) to parts and components producers.
IKCO’s Production Surveyed
According to the data, the production of IKCO, the country’s largest automaker, stood at 40,387 vehicles in the month under review, ISNA reported.
The Peugeot series (405, 206, 207and Pars) had the lion’s share of the production with 25,570 vehicles, of which 24,310 were delivered and 1,260 were incomplete and couldn’t be sold.
It was followed by the Samand series (GLX, Soren, etc.) with 4,698 produced vehicles, but the company completed incomplete vehicles from past months and sold a total of 5,186 vehicles.
Dena came next with 4,141, Rana with 3,955 and Tara with 1,648 produced vehicles. Similar to the Samand series, the automaker completed the three models that awaited parts in the previous months.
IKCO issued 144 sales invoices for 4,681 Dena automobiles, 7,052 Rana vehicles and 2,036 Tara cars. It produced 375 Haimas, of which 350 were delivered.
In total, the automaker sold 34,448 vehicles and left 1,894 cars incomplete. It issued sales invoices for 43,616 vehicles in the period under review.
SAIPA Had Higher Incomplete Vehicles
SAIPA’s vehicle output hit 29,562 during the month while the company issued sales invoices only for 15,256 automobiles, meaning that 14,306 vehicles remained incomplete.
The automaker completed and sold SAIPA 151 pickup trucks, but couldn’t deliver all the produced Tiba and Shahin vehicles. It produced 2,176 151 pickup trucks, but managed to sell 3,144 pickup trucks.
The production of Tiba and Shahin in the period hit 24,533 and 2,853 vehicles respectively, while the company only sold 10,572 Tibas and 1,540 Shahins.
If the current problems between automakers and parts producers were to persist, it may result in a high backlog of incomplete cars and lower quality parts. Needless to say, the current situation is not untenable.
