The director general of the automotive industry and the driving force of the Ministry of Silence said: “It is likely that the section related to the supply of cars on the stock exchange will be reformed or if the Egyptian parliamentarians do so, the mechanism will be transparent for the Ministry of Silence and production units.” When a commodity is to be offered on the commodity exchange, its supply and production must be sufficient to achieve a reasonable price.
In an interview with ILNA Economic Reporter, Soheil Memarbashi said about the ways out of the car industry monopoly: One of the things that can take the car market out of the monopoly is that private sector companies that were active in previous years but with problems in importing parts and so on. Reactivate the face. In this context, the issue of activating a common platform used by all private companies has been raised.
He continued: “It means to share the platforms in which information has already been obtained and good productions have been done and whose information is owned by domestic companies, and each of the car manufacturers should invest in a part of this platform.” Finally, each company, according to its situation, produces and sells the appearance of its car differently from other car manufacturers with its own brand. This means that an engine, gearbox and components that are not visible to the customer are used, but the appearance and design of the car will be appropriate to the taste of each company.
“On the other hand, there is the issue that private companies produce with very little capacity,” the official said, referring to the low circulation of cars produced by these companies. This year, the total production of these companies is about 25,000 vehicles, while they have the capacity to produce 250,000 to 300,000 vehicles per year, which is about ten times.
Memarbashi added: “In this case, meetings were held in the Industrial Development and Renovation Organization of Iran and the requirements for the realization of the leap program in car companies were reviewed so that car companies could offer new products to create competition.” We hope this program will be realized so that next year we can see the success of private sector companies.
The Director General of Automotive and Power Industries of the Ministry of Silence clarified about the financial resources of these companies for this expansion of activity: Some of these companies are active in the capital market and provide financial resources in different ways in the capital market. Several companies have also issued securities and have accumulated good resources so far. In addition, these companies are available as a priority for the Ministry of Silence to provide facilities for Note 18 and 30 or other financial resources. The needs of these companies are much less than the big car manufacturers, so these facilities can be provided to these companies. These methods can be supported by other methods such as paying interest subsidies on facilities and other items that exist in the Deputy of Planning and Planning.
He also said in response to a question about the possibility of canceling the supply of cars in the Commodity Exchange: The supply of cars in the Commodity Exchange is a plan that the car working group of the Parliamentary Committee on Industries and Mines is working on. In several meetings that have been held, the Ministry of Silence and car and parts companies have raised the points and ambiguities about the supply of cars in the commodity exchange to the members of parliament.
Memarbashi added: “Considering that this issue was also raised in the meetings of the Parliamentary Committee on Industries and Mines and almost no specific conclusion was reached, it was decided to make reforms.” Our prediction is that it is likely that the section related to the supply of cars on the stock exchange will be reformed, or if the Egyptian parliamentarians do so, the mechanism will be transparent for the Ministry of Silence and the production units. When a commodity is to be offered on the commodity exchange, the circulation of supply and production of the commodity must be sufficient to achieve a reasonable price.
He also stated: the car is not an ordinary product, for example, if 150 thousand Peugeot 206s are produced, its production is in 10 to 12 different variances, that is, in each variance, about 7 to 8 thousand units are produced. This amount of supply is not enough to discover the price in the commodity exchange. So our diagnosis is this; The price that will be determined for the car in the commodity exchange will be much higher than the price that is in the current market conditions. Therefore, we suggested that the prices be determined in a managed manner for some cars that are recognized by the Competition Council and are competitive cars, based on the instructions of the price determination and stabilization board. We had comments on the supply of cars on the Commodity Exchange, which we drafted in a meeting with the Industries Commission, and we expect that the obscure parts of the plan will be corrected if implemented.
Regarding cooperation with Russian companies in car production, Memarbashi said: “Cooperation with Russia in car production is under consideration.” A new company had also applied for cooperation, and the Industrial Development and Renovation Organization of Iran has held meetings with them. As a domestic company is not allowed to cooperate with more than one foreign company, documents from an Iranian company applying to cooperate with a Russian company must be submitted to the Development Organization for a decision.