Compering Iran’s Car Prices with Other Countries

Khodrocar – with no doubt, Iranian thinks that car price is so expensive in market which may have different reasons among people. By analyzing we can find out that expensive cars are not problems but there are some other problems which lead to this one.

A typical way to find out whether a product is expensive or not is to compere it with base wage to find out how much time does need to work for buying that specific product.

According to analyzes of TEB (Turkey Economic Data Bank) the needed time for buying a car in 12 different countries are as the following:

1-    America : 4 months
2-    Belgium, Germany, France, Japan: 6 months
3-    Ukrain: 7 months
4-    Spain: 8 months
5-    Portugal: 1.5 years
6-    Poland: 1.8 years
7-    Brazil: 2.4 years
8-    Turkey: 2.9 years
9-    China: 5.2 years

According to the TEB most of European citizens can buy VW Golf with 6 months of their wage. Now, if we want to bring this analyze to our country, we have to put the wage that high council of work announced and cheapest car in the market together.
The high council of work says base wage of a employ in 1397 would be 11 million and 112 thousand IRRs and the cheapest car in Iran’s market is Pride 131 and 111 which is 230 million IRRs. Now, if we consider this employ will save all of his money, he can buy a car after 2 years.

Now let us to check this in Turkey, base wage in this country is 1603 lira and cheapest car in their market is Renault Sandro step way with 54 thousand lira. It means a Turkish citizen should save his money for 2.9 years to buy this car.

"With these kinds of analyzes we can’t find out whether a car is expensive or not because car price in Iran doesn’t have a specific frame but price of raw materials, wage of workers, financial costs and taxes are indexing the car price. Also, our currency value is not stable then we can’t do this analyze for our country.” Abdoallah Babaei, an expert of auto industry told Khodrocar reporter.

"Decrement in currency value doesn’t mean products price increment but it means that price of goods will match with the currency value.” He added.

"Determining whether cars are expensive or not in our country is under different challenges like, currency value decrement, people's purchasing power decrement an etc. in fact cars are not expensive in our country but our currency value is decreasing so we think prices are high. If the government had management on currency value then prices won’t change at all.” He continued.

We an exact analyzes among different conditions like pricing and economic situation we can find out that not cars and not even any other good has been got expensive but our currency value has decreased a lot and people think that everything is getting expensive.

Khodrocar Reporter: Fazel Suri

Khodrocar Translator: Amin Zamani