Delivery of automobiles pre-sold may take two years

Statistics show that automobile production and sales have fallen by 48 and 63% in the month of Tir (22nd June to 22nd July) compared to the same period, last year. This fall is expected to affect delivery of automobiles to those who have placed orders. Iran Khodro has 49 trillion IRR debt to banks and has received 82 trillion IRR from customers who have placed orders. This brings their total debt up to 131 trillion IRR and due to reduced production delivery of vehicles will not be possible for at least 2 years.

A further problem is that parts manufacturers are unable to deliver on time which has resulted in depots of unfinished automobiles at the factories. There are still customers interested in buying domestic cars. However, due to reduced productions, automakers cannot deliver the cars on time. The length of delays depend on the policies of the automaker and whether they choose to deliver their backorders or make cash sales, first.

Shargh daily reports that currently automotive production is 50% behind schedule. Plans indicate a daily production of 6 thousand vehicles while in reality only 3 thousand to 3.3 thousand cars are built. Approximately 55% of car parts are supplied domestically while 45% are imported. The reason for this import is that some parts from domestically manufactured cars are still imported and in the case of high volume cars, a limited number of parts such as sensors and special steel alloys are imported since they cannot be produced in Iran.

This has led to a trend in parts manufacturers going under. So far, 90 parts manufacturers have shut down and 70 thousand people have lost their jobs.