Effects of Vehicle Import Prohibition on Scrappage

Khodrocar – The gates of vehicle imports has been closed and many related businesses will be hurt. Businesses like vehicle scrappage, which faced many tensions since last year due to the decisions of government.

However, these center tried to stay active and resisted against government pressure but the government increased these pressures. Domestic car manufacturers were exempted from car scrappage scheme and just the imported vehicles remained. Two million and 500 thousand scrappage certificates are waiting.

Now, considering the ban of vehicle imports, if the government doesn’t have any solutions for it, soon the prices of worn out vehicles will decrease, scrappage centers will be closed and this industry will face other negative effects of it. The reason is that people are no longer willing to sell their cars at current prices and the government will not provide any facilitations anymore.

Now, what will happen to scrappage centers and industry?
Amir Seifizadeh, an automotive industry expert, told Khodrocar regarding the issue: "Considering the ban of car imports, scrappage licenses will have no credits anymore. Therefore, the gradual closure of scrappage centers will be implemented more quickly and we will see the closure of these centers soon, in the coming weeks.

He believes that the government will cancel any registration for scrappages.

Seifizadeh explains: "Things like fuel consumption, preventing imports and taking environmental action is dependent on scrappage licenses. With the beginning of autumn and winter, and considering the last year’s decision of the ministry of industry, mine and trade, 202 thousand vehicle was going to be scrapped this year”, but the possibility of scrappage center’s closure will make new challenges for them.

Answering to the question about the former scrappage licenses, he explains: "If there is no market and no scrappage centers, there will not be licenses. No market, no scrappage. This thing requires patience.”
Khodrocar – The ban of car imports will affect many industries such as car and part manufacturers, car dealers and even brokers.

Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Maziyar Jafarieh