TEHRAN, Iran, July 1
Trend:
Official pricing that is set by the government has damaged the auto industry and reduced automakers' monthly turnover, said the secretary of Iran Auto Part Makers Association.
"The root of problems are official pricing that causes lack of liquidity and weakens automakers and auto part makers," said Maziyar Beygloo, Trend reports citing Mehr News Agency.
The pricing should also be applied to basic materials used by automakers as well including copper, steel, and petrochemical products, the price of the finished product is set by the government while the price of basic material is set by the market and mercantile exchange, he stated.
"At the moment dealers use these pricing loopholes for their benefit and create false demand. The price gap should be diminished and the remaining money from it should provide credit for individuals to purchase vehicles in installment," Beygloo noted.
"Liberation of auto price for auto factories would create closer rate with the market while many who have purchased cars as an investment and held in depot would sell it in the market and supply would double which will lead to decline of prices," he added.