Economy, Sci & Tech

IKCO Vehicle Production Slumps

IKCO Vehicle Production Slumps
IKCO Vehicle Production Slumps

Vehicle production at Iran Khodro Company, Iran's largest auto manufacturing company, has slumped below 1,000 units a day.

During the month ending May 21, the company would produce nearly 2,400 units on a daily basis. However, IKCO produced only 910 units a day during the month ending October 22, Tasnim News agency reported.

An unnamed official in the auto sector said the news on providing auto loans worth 250 million rials ($7,240 at market exchange rate) has been released too soon. "Customers have put off purchasing cars until after the loans are given."

Central Bank of Iran's Governor Valiollah Seif recently announced plans to extend auto loans with a seven-year repayment period.

According to the unnamed official, the government should have released the news only a few days before the loans are actually given.

According to the announcement, the loans will not be given for another two weeks.

With the eradication of certain problems hindering production, IKCO and SAIPA will produce 1,500 and 1,000 vehicles respectively on a daily basis, the official said.     

All major manufacturers have been hit by the slowdown in purchase, with customers holding out in expectation of domestic automakers lowering prices and the entry of foreign cars in the local market.