Iranian carmakers halt supply in a bid for price rise

Business Materials 29 September 2012 16:23 (UTC +04:00)

Azerbaijan, Baku, Sep.29/ Trend F.Milad/

The two major Iranian carmakers, Saipa and Iran Khodro, stopped supplying their products to the market last week as a bid to bargain for rising prices, according to the Persian Jahan-e Sanat. The reason for this is sharp increase of some car prices during the recent weeks.

The vice chairman of Majlis industries and mines committee said, the carmakers' attempts to halt sales was illegal.

"The Majlis plans to investigate Iran Khodro in this regard," Azizi Akbarian added.

According to him, the car market should not be monopolized. To get rid of the current situation, the market should move toward realizing a competitive environment, he noted.

He pointed out that the car importation customs rates should be reduced in order to force domestic manufacturers to cut prices.

Decrease in domestic production and import limitations as well as dollar price rise have led to a 35 percent average increase in prices of cars in Iran.

The ILNA news agency reported that prices of different cars have grown by around 35 percent on the average since March 2011.

According to the report, the supply has decreased but the demand is still high.

Iran's car output fell by 37.4 percent compared to the same period last year in the first four months of the current calendar year, which began on March 20.

Iran plans to manufacture at least three million cars by 2025 and export some one million sets, the Fars News Agency quoted Industry, Mine, and Trade Minister Mehdi Ghazanfari as saying on June 16.

"Some 1.6 million cars were manufactured in the past calendar year and 55,000 cars were exported," Ghazanfari said.