Sudden Decisions Increase The Tensions Of Vehicle Market

Khodrocar – The tensions of imported vehicle market started last year with the shutdown of SABTARESH and after that, it was  suddenly decided to increase the imported vehicle tariffs and made the situation worse. After all, the exchange range fluctuation was like a horrible nightmare for this market.

Now, the Islamic Parliament of Iran presented an approval to the Islamic Parliament of Iran in order to organize and control the vehicle market, which includes the tariff reductions on imported vehicle markets.

However, experiences show that the sudden decisions of government and parliament always make everything worse for the industry and economy.

What are the consequences of this new approval of parliament on imported and domestic vehicle markets?

Amirhassan Kakaei, an automotive industry expert tells Khodrocar regarding the issue: These sudden decisions do not have any positive effect on automotive industry and it does not seem that the members of parliament agree with the implementation of this plan.

He continues: Last year, the tariff increments for imported vehicles have been implemented in order to control the exchange and vehicle imports. But it stopped the development of the industry. Now that we have exchange rate fluctuations, they are trying to control the situation.

Kakaei believes that the sudden decision are not effective at all. Also they have negative effects on automotive industry.

He emphasizes: Last year’s tariff increment on imported vehicle markets didn’t have a direct effect on domestic vehicles but it created a 300 to 400 million IRRs side market for these vehicles. These actions must have scientific and economic reasons. Otherwise the brokers will be the winners.

The automotive experts believes that apparently this approval is in order to defend the domestic vehicles but the brokers will receive the benefits of this action.

According to Amir Hassan Kakaei, another consequence of a sudden cut in tariffs is that the foreign investors should rethink about their contracts and maybe they give up.

It seems that these sudden actions will not have a good effect on the car market and industry. All we can do is to wait and see the results of this action.



Khodrocar Reporter and Translator: Maziyar Jafarieh