Iran's policies for auto sector finally yield results

Tehran, Iran, Sept.24

Trend:

Iran's policies related to auto production and sales, have eventually reduced the prices for the real customers, secretary of Iran Vehicle Manufacturers Association Ahmad Nematbakhsh told Trend.

"Our suggestion to the Minister of Industry, Mine and Trade was that the only way to reduce prices is the immediate sale of autos in the market but the solution was not implemented immediately, but only after a series of steps," he said.

"The first policy was that owners of national identification cards can only buy one vehicle, but this policy didn't yield any results," he said. "The dealers abused this, by taking numerous cards and buying several cards."

"Another government policy was that only individuals older than 18, can purchase a car, but the customers' demands to buy a vehicle were overwhelming," he said.

"Also, it was decided that the Iran Khodro and SAIPA car manufactures would have their websites linked, and there would also be permits for purchasing of cars. The idea was to prohibit giving the permits to those who have already purchased a car the previous year, but this plan didn't work out well either," said Nematbakhsh.

So eventually, it was allowed to have cars being sold immediately, based on free market prices, he said.

"This allowed for real buyers to enter the market, while squeezing out the dealers," he said.