Effects of Sudden Decisions on Auto Market
It was April 09, 2018 when the government announced the unified exchange rate for controlling the market and as a result the auto market became silent. After that the parliament came on to improve the auto market condition, but nothing has happened since then.
Khodrocar - Since the last year, the car market has always been affected by the exchange rate fluctuations. Some of price increments came from the black market, but they stuck on vehicles which didn’t have the ability to take the price increment.
The government is interrupting the auto market every time and choose supervisor in the market. Once National Competition Council and now the parliament has been chosen. After the troubles of dollar high price and the government’s decision to unify exchange rate, now the parliament is responsible to organize the auto market. They had an emergency plan for this matter. Meanwhile, nothing has happened in the auto market.
"The parliament entrance in pricing or organizing the auto market is not effective because the price has to be choose inside market with supervision. The government’s instruction is not helping this market and issues should be rotting.” Hassan Karimi Sanjari told Khodrocar reporter.
"While prices are kept low rate by the national competition council tools, then benefits of exchange rate fluctuations would be in middlemen pocket. Regarding this issue, selling a vehicle through companies would be under control. Of course, pricing vehicles on the side of market shouldn’t be in control of supplier companies.” Said Sanjari. "Our market hasn’t the features of a competitive market therefore, at first production and supply should be controlled.”
Recent decisions of the government in the past couple years hadn’t helped the markets and in some cases they just worsened the situation. Nevertheless, the government is continuing its decision making and doesn’t want to analyze its previous decision's effects on different markets. Maybe this decision is able to kill a market lonely.
Khodrocar Reporter: Negar Mir Karimi
Khodrocar Translator: Amin Zamani