Baku, Azerbaijan, Feb. 17
By Umid Niayesh - Trend:
The largest Iranian carmaker, "Iran Khodro" has experienced $201 million (based on official rate of 24,871rials per each USD) in loss during the first half of the current Iranian calendar year, which started on March 21, 2013, the Managing Director of the company, Hashem Yekke Zareh said, Iran's ISNA news agency reported on Feb. 17.
He went on to say that, currently the company manufactures with only 60 percent of its production capacity.
According to the statistics, about 69 automobile manufacturer units have been closed and 115,000 people lost their jobs in the automobile sector of Iran during the past two years due to pressure of the sanctions.
Increasing prices on raw materials and foreign currencies are car manufacturers' main problems in Iran.
Yekke Zareh forecasted that the company will manufacture with 100 percent of its capacity by June, 2014.
He also expressed hope that the company's production will increase by 40 percent in the next Iranian calendar year, compared to the current year.
Commenting on the cooperation with the French carmaker Peugeot, Yekke Zareh said that the company will not continue the former cooperation style.
"We are interested in participating in their global export plans and joint investments projects," he added.
French Peugeot plans a massive resumption of activities in Iran after it quit cooperation with Iran two years ago due to international sanctions.
Peugeot sold parts of its share to the U.S. General Motors two years ago and ended its activities in Iran.
Although the company stopped sending car parts to Iran during the past two years, it plans to resume activities in Iran.
Following official ease of sanctions on Iran, Iranian and foreign auto-makers have talked frequently and Iran Khodro and Peugeot have met or have had video conferences.
Renault, Peugeot rival, has recently made an agreement with Iran and plans to boost sending car parts to the country.
Peugeot used to present one fifths of its products in Iran. It has undergone great loss following end of cooperation with Iranian auto-maker industries.
Iran exported 5,477 sedans during the first ten months of the current solar year which indicates an 88.25 percent decrease compared to the same period of last year.
The value of the exported cars was around $37 million which is 86.47 percent less than in the same period of last year, according to the Iranian Custom Administration's latest report released on Feb. 10.
The country produced 576,663 cars in the first ten months of the current Iranian calendar year.
Iran produced 989,110 cars in 2012, which made it Asia's eighth largest car manufacturer. Iran's automobile output faced a 40 percent decrease in 2012. The country was Asia's fifth largest car manufacturer in 2011, with a total output of 1,648,505.
Edited by C.N.