Iranian ministry obliges car companies to sell assets to private sector
TEHRAN, Iran, May 19
Car companies in Iran should sell their properties and assets to the private sector via stock exchange and increase their productivity, Deputy Minister of Industry, Mines and Trade Mehdi Sadeghi Niyaraki said.
"The set of measures taken to regulate the market has led to lower car prices and reduced demand, but one of the most important things is to keep the supply of cars at a needed levelm" Niyaraki said.
Market observers say the systemic decline in supply has triggered the steep increase in car prices. Following the chronic shortage in supply, middlemen, car dealers of all stripes are indeed having a heyday. As a result, Iran's car industry suffers blow after blow.
Niyaraki said that the supply issue will be solved when the monetary and financial institutions provide liquidity to the automotive industry.
He stated that the goal of car companies is to produce 4,000 cars a day.
“Achieving this level of production depends on the provision of foreign exchange and credit for car manufacturers,” he said.
The official noted that certain new measures have been taken with regards to the car market.
"Automotive companies themselves have not had any price increases since February 2018,” said Niyaraki.
He spoke about the measures to balance the car market, such as selling cars to people over 18 years old, expiry of car warranty after three months of non-use of the purchased car, etc.
"We must act in such a way that everyone knows that the car is not a capital asset,” he said.