The second wave of rising prices is on the way?

Khodrocar - At the beginning of the year auto market had some tension especially after dollar fluctuations. Dollar rate increment affected the domestic cars and foreign cars, market. Even the parliament tried to solve the problem by an organizing plan. 

However, according to Mansoor Moazemi, chairman of IDRO auto market is temporally stable, also chairman of vehicle importers association promised that problems of imported vehicle market will solve after stuck cars in custom clearance but right now we observing the exchange rate increment every day and it is affecting other markets too.

"If the currency rate continues its instable condition, the local auto industry will suffer losses and it may cause the shutdown of production lines.” Shahram Azadi, an expert of auto industry told khodrocar reporter.

"There are 2 things about this matter, first supplying the currency second pricing the currency. In the currency supply debate, due to the problems, all car manufacturers and suppliers may not be able to use trading exchange or exchange of second market at the appointed time. This will cause delay in production and have effect on pricing and performance of auto makers and part manufacturers.” He added.

"If the issue of auto makers and part makers doesn’t solve then both of them will suffer losses. It should be noted that the supply of vehicles requires a two-month-old period from abroad, if orders and purchases are not made today, we will see its effects over the next two quarters, which will make things worse than now.” He said.

"The current situation of part supplement is the result of two months ago problems and it has been shown itself now. During this time some workshops got shutdown or reduce their production rate.” Azadi continued.  

"All of these problems are affecting each other like domino and all of them will lead to the losses of the market and reduce the distribution in the market. If we want to sell the car at the previous price, automakers and manufacturers will suffer a lot of losses, and the continuation of this issue will lead to bankruptcy, so price increases are unavoidable.” He added.

What is most apparent is that the automotive industry has been struggling with sharp fluctuations in exchange rates and hasty decisions on the other hand before imposing US sanctions on the industry. If the country's economic situation does not reach relative stability, the country's industry may soon be forced to close one of its biggest industries.
 

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani