Auto Part Manufacturer Expectations from Convertible Currency Removal

Khodrocar – auto industry is facing some challenges such as SABTARESH website unstable condition, increment of vehicle import tariffs, but, its related industries like part manufacturing industry is struggling with the convertible currency removal, part’s trafficking and underground production.

Convertible currency removal wasn’t a shocking news because this plan started two years ago for part manufacturer and today was the final step of it.

The important aspect of this plan is the parts price increment, which will increase the final price then the vehicles’ price will increase too.

Right now, more than 90 percent of parts’ first materials are importing and convertible currency removal means that 90 percent of auto parts will have price increment.

"Parts manufacturers are expecting the government to increase the final price of vehicles in the national competition council due to the convertible currency removal.” Said Mohamad Reza Najafi Manesh, director of the board of the Iranian part manufacturer association.

"Since last year, 30 percent price increment has been imposed on part manufacturer. Convertible currency removal will affect vehicles’ final price and this price increment should be according to an accurate plan.” He said. "The national competition council is pricing domestic vehicles and this wrong procedure has been started since the two pervious governments.”

"We also expect to see the effects of convertible currency removal on the final price and we believe that pricing should not be like this.” He added. "Importing is an entry for parts and first materials, so if importing have costs increment then vehicles’ price should increase too. It the past years, cooper, aluminium and steel price was increased following the dollar’s price increment.”

"Convertible currency had some problems before and it made different challenges for part manufacturers. The recent decision will have positive effects because part manufacturer could have better reactions to the price changes.” Said Farhad Beh Nia, an active part manufacturer.

Previously, some expert criticized the way of part importation and they said that removing convertible currency and increasing the vehicle importation tariffs will make other problems such as parts trafficking and underground production.

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani