Liquidity management is the challenge of auto industry in Iran

According to Khabar Khodro, the CEO of Bahman Group said, “Today auto industry has an important role in GDP as an economic potential in country.”

Mohammad Reza Soroush in an interview with Khabar Khodro’s reporter added, “With exit of auto industry from government management and privatization of this segment, by considering available capabilities can expect that auto industry of Iran would improve in quality and quantity and most of its problems will be solved.”

He told, “Managing economical organizations by private sector means that people are controlling economy of country. But unfortunately in recent 4 years auto industry especially parts making industry, which is mainly managed by private sector, has faced many problems because of bad performance in macroeconomic environment and therefore in auto industry.”

He admitted, “The environment of auto industry in Iran is basically different from environment and conditions of auto industry in other countries such as Korea so do not expect same results.”

He mentioned to inflationary conditions of economy in Iran and remarked, “In current inflationary conditions of our economy, conditions for competition with foreign organizations would be decreased. In such a condition currency would exit from production chain and it will cause stagnation.”

He said, “Unfortunately, auto industry has faced production decrease because of international limits and lack of liquidity as now many companies has forced to supply liquidity by selling stock and surplus assets.”

Soroush said, “Now, basic challenge of auto industry is liquidity management. In recent two years, the demand structure has changed with increasing price of products and vehicles and it is necessary to make change in production according to managing costs and controlling prices.”