From Farewell with National Competition Council to Car Makers Hording Accusation

Khodrocar – Iran’s auto industry is affected by the exchange currency fluctuation in the cycle of production and on the other side, part makers can’t import first materials and in the first step supplying the auto parts in complicated for auto makers. Meanwhile, members of part makers’ association alert that problems of part makers should be solve very soon or vehicles will be produce incomplete but no one heard their voice.

On the other hand the production cost is increasing for auto makers and they are not happy at all because they can’t increase their final prices. Mansor Mazami, Chairman of IDRO said pricing vehicles is a duty of competition council. Since the first day of the New Year till now prices are increased for 7.6 percent.

Auto makers are blame for hoarding and storing any kinds of products will challenge its market. However, car is not in the list of Hoarding Prevention plan and in the auto industry first materials, spare parts and tires are in the list. Also, we can say they are right because if they selling their products with loss then they may bankrupt very soon.

Ferydoun Ahmadi, a member of the board of industry commission of the parliament said that cars are not among basic commodities. However, when should we help the producers in the current instable market? Isn’t it a good time to say goodbye to governmental pricing?

"People think that automakers are increasing the price but this year only under 450 million IRRs cars got the permission of 7.1 percent price increment and last year the increased the price twice for 2.5 percent meanwhile some materials price are increased for near 100 percent.” Ahmad Nemat Bakhsh, secretary of automakers association told khodrocar reporter.

"For instance, Aluminum’s price has increased for more than 120 percent during 2 years. Polymer materials increased for 75 percent, steel sheets increased for 70 percent also copper increased for 80 percent the alloy of part makers has increased for 50 percent. Now the competition council should answer that why they are not letting automakers to increase their prices?” He added.

"In the current situation, wandering capitals are going toward States, dollar, coin and cars, markets. Bahman Motor shouldn’t blame for what happen in the previous Saturday for Mazda 3. Prices of factory and market has a great difference so people trying hard to buy a car from the factory.” He said.

"Because of new problems in exchange transferring, part makers couldn’t clear their products from the customs and inject them to the production line. Right now, more than 50 thousand cars are incomplete in IKCO and SAIPA. The car has been produced but it doesn’t have Start, Suspension or other stuffs. Hording vehicles is a great risk for the automakers because they need a great storage to keep these cars safe even keeping incomplete cars is costly for them.” Nemat Bakhsh said. "Instruction of central bank and custom caused incomplete cars but managers tried and put efforts in the previous years to prevent any incomplete production.”

It seems that cooling the economy down is the first responsibility of the government and it is crucial for the auto industry. The government should keep trying to hold the atmosphere to prevent any challenges while we are reaching the new sanctions. Placing industries in the private sector in the second part is likely to be a way to save industries like cars. Maybe if the government withdraws its support behind the car manufacturers, the support that has never been advanced will be very impressive for this industry.

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani