Demand increased in Iranian auto market
The increase of demands for purchasing vehicles was due to changes in foreign currency rate and fall stock exchange, said the director-general of the transportation industries department of the ministry.
"The auto purchase demands are currently not logical since it has been considered as an investment in recent days due to the decline of stock exchange index people move toward investment in the auto market," Soheil Memarbashi said, Trend reports citing ILNA.
"The changes in any market would affect the others including the auto market, the stability in all markets would maintain demand and prices," he said.
"About 400,000 vehicles have been produced from the start of the current Iranian year(started March 20, 2020) until September 6 and the production has increased 20 percent comparing to last Iranian year(started March 21, 2019)," Memarbashi added
"Total of 325,000 vehicles from the following 400,000 were supplied to the auto market and the supply has increased 5 percent during this period compared to last year," he noted.
"The change in the foreign currency rate has affected automakers and basic materials prices. As result the price of basic materials has increased between 70 to 80 percent from the start of this year to date and increased 3 times comparing to last year," Memarbashi said.
"Current pricing volatility harms car manufacturers. Even if the competitive council would set a standard price for the next three months, automakers would still face losses," he added.
"The help of the Central Bank of Iran (CBI) and the customs would hopefully improve the production process. The CBI should allocate foreign currency for imports of basic material and customs should facilitate their release," he noted.