TEHRAN, Iran, March. 23
Trend:
Iran`s Competition Council will set the new car prices, the head of Iran's Vehicle Manufacturers' Association said.
Referring to the reduction of automakers' supply and its negative effects on the automobile market, the head of Iran's Vehicle Manufacturers' Association Ahmad NematBakhsh said that the decrease in car supply will lead to an increase in car prices, Trend reports citing YJC news Agency.
“If enough steel is not available to automakers and parts manufacturers, we will run out of raw materials, so that the automakers will not be able to supply enough cars,” he said.
The shortage of raw materials overshadows the production, he says that currently, a number of defective cars need parts.
Noting that the main root of the carmakers' losses is mandatory car pricing, Nemat-Bakhsh said that Iran Khodro has lost $2 billion because of this pricing method.
“Mandatory pricing (by the government) should be stopped,” he noted.
Regarding the pricing of new cars, Nematbakhsh said that the pricing of new cars is done by the Competition Council, but we have suggested that the pricing of low-volume cars be done by the car manufacturers themselves.
“The Competition Council sets car prices at very low rates,” he added. Saipa and Iran Khodro companies have lost $4 billion in the first nine months of the last Iranian year (ended on March 21, 2021) due to mandatory pricing.
He went on to say that the formula of the Competition Council for car pricing has a fundamental problem.