Iran confronts four automakers involved in price hike

Business Materials 27 May 2019 10:49 (UTC +04:00)

Tehran, Iran, May 27


Four automakers are to face consequences of their role in recent auto price hike in Iran at the Governmental Discretionary Punishments Organization.

"Currently four automakers, including Bester, C3 (SAIPA subsidiary), Haval and Kerman Motor have been introduced to Governmental Discretionary Punishments Organization for their involvement in high auto prices," said Abbas Tabesh, Managing Director of Consumers and Producers Protection Organization, Trend reports citing Mehr News Agency.

He noted that the Consumers and Producers Protection Organization introduced four auto brands, including Kerman Motors, Besturn, C3 and Haval, to the Governmental Discretionary Punishments Organization for overcharging.

"The Consumers and Producers Protection Organization is responsible for auto pricing so the big automakers are obligated to provide 80 percent of their products for immediate sale and 20 percent for storage at the market for keeping the balance," he added.

Tabesh noted that they target to achieve accomplishment of 80,000 incomplete vehicles stockpiled at automaker's warehouses.

He stressed that reducing dependency on foreign countries would reform domestic auto industry. "Reducing dependency is an important issue since the enemies are focusing on imports of auto parts to prevent our production but we can improve domestic production."

He indicated that two Iranian automakers have so far reduced their dependency and saved $78 million by utilizing domestic production.