Prerequisites for Increasing Car Production Outlined

Domestic car production will decline, as inflation is uptrending in the fiscal 2022-23, an automotive official said
Prerequisites for Increasing Car Production Outlined
Prerequisites for Increasing Car Production Outlined

Car production capacity could be increased by 50%, provided prerequisites created by growth in inflation should be put in place in the current fiscal year (started March 21), secretary of the Association of Homogeneous Propulsion Industries and Component Manufacturers said.
Arash Mohebbinejad also told Khabar Khodro that these prerequisites include providing liquidity to automakers, reforming the pricing system and amending the contracts of parts manufacturers.
“According to the forecast of all economists, the country will face high inflation in the fiscal 2022-23, so in an inflationary economy with a constant volume of liquidity, production will decrease. Therefore, if the output is to increase by 50%, the automotive industry needs to have the appropriate liquidity to compensate for inflation and increase production,” he said.
The official stressed that changing the sources of liquidity is one of the necessities, so reducing the payment period, obtaining bank facilities and using similar methods will help resolve the problems of parts manufacturers.


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