Saving the Auto Industry by Free Price System
The Islamic Parliament again want to set a chairman for the vehicle market but according to the past experiences, this just makes everything worse and the prices will increase again.
Khodrocar – The vehicle market is confused because of exchange rate fluctuations and the prices of imported and domestic vehicles doubled. And now the parliament wants to take the situation under control and handle the prices via National Competition Council. However, due to the experiences the interference of this organization just makes everything worse.
This council was the reason for the price increment of Pride. Its pricing orders doesn’t handle the situation.
No Hope for Improvement
Bahram Parsaei, a member of the board of directors of Rule 90 Commission of Islamic Parliament of Iran, says: There are about 20 meeting took place in this commission about automotive industry and we examined many of the problems and corruption that occurred due to the creation of a monopoly. This way, we are going to reduce the tariffs for domestic and foreign carmakers, create a competitive market and observe the domestic carmakers, too.
This words shows that the government wants to control and interfere the vehicle market directly and this is not a good sign.
National Competition Council Must Stop Interfering
Considering the new decision that allows the Islamic Parliament for vehicle pricing, what are the consequences of it on the vehicle market?
Ahmad Nematbakhsh, Secretary of Iran Vehicle Manufacturers Association states regarding the issue: The first step for organizing the domestic vehicles market is that the national competition council must stop interfering.
Nematbakhsh mentiones emphasizes: Currently, Iran Khodro and Saipa are leading the domestic vehicle market and these two play important role in vehicle pricing. In Korea the situation is the same and there are two major carmakers but the key point is that these two doesn’t have any effect on vehicle pricing.
He adds: In this situation, the supply must be reduced to allow actual applicants to enter the market. I believe that the free prices is the only solution.
Khodrocar – In the end, we should wait for the last decision of Islamic Parliament and see, what are the consequences of government’s supervision on domestic vehicle market.
Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Maziyar Jafarieh
This council was the reason for the price increment of Pride. Its pricing orders doesn’t handle the situation.
No Hope for Improvement
Bahram Parsaei, a member of the board of directors of Rule 90 Commission of Islamic Parliament of Iran, says: There are about 20 meeting took place in this commission about automotive industry and we examined many of the problems and corruption that occurred due to the creation of a monopoly. This way, we are going to reduce the tariffs for domestic and foreign carmakers, create a competitive market and observe the domestic carmakers, too.
This words shows that the government wants to control and interfere the vehicle market directly and this is not a good sign.
National Competition Council Must Stop Interfering
Considering the new decision that allows the Islamic Parliament for vehicle pricing, what are the consequences of it on the vehicle market?
Ahmad Nematbakhsh, Secretary of Iran Vehicle Manufacturers Association states regarding the issue: The first step for organizing the domestic vehicles market is that the national competition council must stop interfering.
Nematbakhsh mentiones emphasizes: Currently, Iran Khodro and Saipa are leading the domestic vehicle market and these two play important role in vehicle pricing. In Korea the situation is the same and there are two major carmakers but the key point is that these two doesn’t have any effect on vehicle pricing.
He adds: In this situation, the supply must be reduced to allow actual applicants to enter the market. I believe that the free prices is the only solution.
Khodrocar – In the end, we should wait for the last decision of Islamic Parliament and see, what are the consequences of government’s supervision on domestic vehicle market.
Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Maziyar Jafarieh
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