Hybrid Cars Surfing the Wave of Sudden Decisions

Khodrocar – the history of green cars in Iran’s market has ups and downs. During this time order registration website closed, imported cars price increased and importing tariffs of these cars increased from 5 percent to 45 percent.  

This make Iran opposite the world, we are not welcoming green cars and even hardening the situation for them. The sudden increase in tariffs and importers critics made ministry of Industry, Mine and Trade to review it and the result was decreasing the tariffs.

According to the latest instruction from ministry on Industry, Mine and Trade, hybrid cars with engine displacement of lower 1500cc have 5 percent tariffs and between 1500cc to 2500cc have 25 percent tariffs. These tariffs were increasing the hope of importers for improving the market but after a short while other problems such as currency fluctuation happened. Now, to the latest instruction of Iran’s customs, custom value of imported vehicles increased for 10 percent and it means that hybrid car’s tariffs will increase to 35 percent.

"The most important goal of the government in import issue is increasing demands for the currency which increase the exchange rate. Importing means currency will leave the country and this is exactly the thing that the government intends to control.” Hassan Karimi Sanjari, an expert of auto industry told Khodrocar reporter. "Gasoline and hybrid cars are an issue In the matter of importation and the government is trying to control it but we should look at it from different aspects.”

"In the case of hybrid cars, the government’s costs for controlling the air pollution are brightening. Hybrid cars have great impact on decreasing the environment pollution and the government should invest on these cars. In the current situation which we don’t have the infrastructure to produce these cars we can import them at least.” He added.

"When the policymaker decrease the traffic again, he is thinking about the reducing the costs. The logical thing is these cars traffic become 0 because the government’s costs for reducing environmental pollution is too high and importing these cars is beneficial for the country. The 10 percent increment of custom value is a big mistake.” He continued.

However, we shouldn’t forget the currency fluctuation and sudden increment of dollar price. This will decrease people’s purchasing power and even make the importation harder for importers. It seems that the government is just talking about supporting green cars but in action they are hardening the situation for importers. We have to wait to see if the situation became more easer for importers or not.  

Khodrocar Reporter: Maziyar Jafarie

Khodroar Translator: Amin Zamani