Baku, Azerbaijan, Oct. 14
By Fatih Karimov - Trend: Iranian carmakers owe 45,000 billion rials (about $1.3 billion) to domestic part makers.
Secretary-general of Iranian Auto Parts Manufacturers Association Sasan Ghorbani said a sharp decline in demand for buying domestically manufactured cars has faced car part makers with a tough situation, Iran's IRNA news agency reported Oct. 14.
Due to high costs, car part makers have been laying off their workers since two months ago, he said, adding that the issue has reduced activity of car par makers by 50 percent.
Car part makers have sacked 35-40 percent of their workforce, he noted.
There were more than 1,200 car part making companies with around 20,000 laborers active in the country, but the drop in production forced 50,000 laborers to be fired.
Iran's car production dropped by 47.6 percent in the sixth fiscal month of Shahrivar (August 23-September 22) compared to the same month last year.
A total of 60,533 cars of different types were produced in the mentioned month, compared to 115,462 last year according to data released by the Iranian industry, mining, and trade.
In the first six months of the current Iranian fiscal year, 501,104 sedan cars were manufactured in Iran, a 3.8 percent fall year-on-year.
The drop in car production started in the third fiscal month (May 22-June 21), in which 3,000 cars were produced less than the second fiscal month.
Edited by CN