Automakers Register 38% Losses Despite 18% Production Growth

The financial reports of domestic automakers show that they have registered 18% production growth, which is the highest in the industrial sector during the third month of the current fiscal year (May 22-June 21). 
However, these reports claim that the production growth came on the back of hefty losses, such that the accumulated losses of three car manufacturers, namely Iran Khodro, SAIPA and Pars Khodro, reached 770 trillion rials ($2.42 billion).
Experts and analysts believe that the rise in production will also increase the accumulated losses of automakers and if management practices and pricing structure are not corrected, car factories will soon face numerous problems.
"The Ministry of Industries, Mining and Trade has announced halting the production of Tiba, Tiba 2, Saina and Samand cars from the beginning of the fifth month of the current fiscal year [July 23],” Dariush Badiei-Sabet, an automotive analyst, told Donyaye Khodro.