Car prices on rise due to bubble – Iranian official (Exclusive)
Tehran, Iran, June 23
By Kamyar Eghbalnejad, A. Shirazi - Trend:
The head of Tehran Auto Dealers Association said the recent rise in the price of cars across the country has no valid reason and, in fact, is a bubble.
The gap between the demand and supply of vehicles in the market is the main reason behind rising car prices in Iran, Saeed Motemani told the Trend news agency on June 23.
Stressing that the high prices might be a bubble and are not real, he said, “The prices (of domestic cars) are expected to decrease in the coming days (as the online auto registration system was restored a week ago)”.
He said the demand for foreign cars has been decreasing and their price will also see decline, accordingly.
Motemani further said cars have become an essential commodity and inseparable part of people’s lives, and that vehicles need to be supplied to the market in sufficient numbers to stop the emergence of the black market.
On June 17, in a bid to cut out middlemen and control skyrocketing prices, Iranian carmakers Iran Khodro and Saipa launched online presales of their products.
The prices of different models of cars reached record highs on the Iranian market on June 11, rising between 20 million and 400 million rials over the past 10 days.
According to Iranian media, the rise between 20 million and 400 million rials in the price of cars is due to foreign car manufacturers leaving Iran.
Peugeot Citroen, Mazda and Hyundai are among the car manufacturers that have already left the country. Meanwhile, some other manufacturers have limited their output, and this has led to a further rise in prices.