Vehicle Production Halved

Vehicle Production HalvedVehicle Production Halved

The latest statistics released by the Ministry of Industries, Mining and Trade indicate that the number of vehicles produced during the Iranian month ending September 22 declined by 47.6% year-on-year.

While 115,462 units of vehicles were produced during the corresponding period of last year, this year's output amounted to only 60,533 units, ISNA reported.

Down from last year's 97,264 units to 54,503, the production of cars dropped by 44% during the same period.

Witnessing a 68.5% drop, pickup trucks did not fare any better, as 16,281 units of pickup trucks produced during the period last year plunged to a meager 5,134.

Light and medium goods vehicles, as well as heavy trucks also registered a drop in production.

These vehicles also more than halved. While last year's figures indicate 1,848 units were produced, 823 units were manufactured during the same period of this year.   

Only 23 buses were manufactured during the current year's 30-day period, down by 53.1% from last year's 49 units, despite the fact that the current bus fleet is dilapidated.

September 22 concluded the first half of the current Iranian fiscal year that started on March 21.

During the first six months, overall vehicle production was down by 3.8% which is testament to the fact that Iran's vehicle industry has not been doing as well as some would like us to believe.    

During last year's first half, 520,932 vehicles were produced while the same number stood at 501,104 this year.

Iran's automotive sector has for the past several months been in dire straits, as buyers have been refusing to purchase locally manufactured cars due to high prices and low quality. Several officials have announced that auto part manufacturing firms have been working at only half the capacity.

The government recently granted automakers aid worth 2 trillion rials ($58 million at the open market exchange rate) to repay their debts to spare parts manufacturers.

Recently, Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh, along with three other ministers, wrote in an open letter addressed to President Hassan Rouhani that vehicles are stockpiling in the parking lots of car factories while warning that the auto industry is on the verge of collapse.