How Likely Does Sanctions Affect Car Pricing?

Khodrocar – Since the beginning of this year till US exits the JCPOA, industries, production and services of the country faced with occasional prices rise and down. In this condition some of producers experienced doubled prices of first materials and others didn’t continue the production and said goodbye.

Meanwhile, automakers and part manufacturers increased their prices which put the main pressure on customers and it is continuing. Now as the time goes by nothing gets better but pressures got worse for strategic industries like part manufacturing and auto industry. Because, this time auto industry sanctions are priority of USA.

"Entrance of the government in pricing in some cases like the time that product doesn’t have a connection to people’s daily requirement, is not right.” Morteza Emad Zadeh, member of industrial management organization told Khodrocar reporter. "the government shouldn’t price the none strategic products. They should hand the market to the distribution system. It could strength the market to defeat the sanctions and improve the exportation.”

"Pricing and controlling the auto market should be handed to itself like other products. Does the government price appliances? It seems that one of the major problems here is the governmental auto industry. Pricing should be handed to the market to control the problems. "He added.

"75% of any products is consist of first material and the rest is costs and human resources so if we can’t support the 75%, then producers will face with challenges and the final price of products will increased. There are two ways to solve this issue, first is increasing final price, two is facing some losses in this way.” Said Abodallah Babaei, an expert of auto industry.

"Two sources of finance for the automotive industry are one of the petrochemicals and another commodity exchange. In general, goods and products that are on the commodity exchange will not be the same as in the same period last year, and certainly, despite the problems ahead, the supply will be lower. Hence, by reducing supply and against rising demand, the actual producer does not get the raw materials they need, and ultimately there is an increase in costs.” He added. "During the sanctions, the government has to control the commodity exchange or any similar market which sell first materials, otherwise, prices will be increase day by day.

In the past two months, organizing the auto market from parliament and pricing 450 million IRRs and lower, cars are waiting to process and may balance the market. However, most experts believe that if the government stop pricing case, then the market has the chance to be more competitive and pricing shall be better.

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani