Impacts of Car’s Importation Ban on Jobs and Capitals

Khodrocar – the auto industry has never been beneficial like oil industry but it doesn’t mean that this industry is not important however the auto industry and especially car importation has approved itself as a big actor in the economy and it needs more support but in fact no one supporting importation.

The prohibition of car imports at first glance has caused the imported cars price increment, a rise in the price of the second market, an increase in unemployment, a decrease in the diversity of product baskets and an increase in the volume bubble volume throughout the car industry. We need to focus on the body of the auto industry and analyze effects of importation ban in the economy.

"The only losers of the importation ban are not importer companies and we have to see the big picture. It took lots of time to gain the trust of foreign auto makers in Iran and Iran’s auto market. But all of a sudden everything is changing and since last July lots of obstacles have been put against the auto industry and these problems will make the foreign auto maker uncertain about the market and they decide to leave or don’t enter Iran. it will ruin the picture of Iran in the global market, also big brands will loses their prestige among people because their representatives won’t be able to support the sale and after sale services.” Ali Shokouhi, an expert of auto industry told khodrocar reporter.

"Most of governmental officials are saying that how much foreign companies are investing in Iran that the fluctuation of the market will affect them? The truth is that importing vehicles in the form of CBU needs different conditions such as designing and producing the product according to the destination conditions. So they have employs specially for Iran’s transactions and by sudden importation ban these employs will be wander.” He continued.

"Chairman of vehicle importers association said that 3 person’s jobs are directly related to each imported vehicle and by considering of 50 thousand imported cars, this part of economy is making near 150 thousand jobs that will be vanished after the car importation ban. Companies will be suspended from work and other indirect jobs which are more than 10 thousand at least, affect from this decision.” He said.

"We can analyze the negative effects of this decision on the body of economy and the government in three different aspects of: at the moment, mid-term and long-term. Moment effects are sudden decrease in the government’s income also people will be depressed after the decision and they will became against the government.” He added. ”Mid-term losses can be seen in the sharp rise in unemployment rates that occur in society. In the long=term losses we can’t gain the trust of foreign companies and they won’t trust Iranian companies after the sanction’s lifted. After the JCPOA, it took one year to gain the trust of brand.”  

Experts believes that the government could consider the effects of a decision before announcing it also they could take some advice from the experts of this industry but like always all decision are happening by a night and the will have great impacts on the auto industry in long-term.

Khodrocar Reporter: Mostafa Anisi

Khodrocar Translator: Amin Zamani