From Production Reduction to Price Increment in the Market

Khodrocar – Car production has reduced notably during recent months and however the summer vacation has started but automakers were close since a long time before because 70 thousand cars are incomplete in their production line.

Automakers can’t pay the part makers debt and this had a big impact on automaker’s liquidity therefore part makers become unable to produce more parts. Among all these problems, auto market had experienced unusual tensions in the past weeks due to the foreign sanctions and the lack of local cars has doubled the tensions.

People are looking at cars as an investment because prices are increasing everyday so the request will increase and some cars like Pride that won’t produce any more are double in price.

Beside all, two major automakers which are in vacation and produced 70 thousand incomplete vehicles are announcing their sale and presale plans. In addition, both of them are waiting for the national competition council to increase prices and organize the market. It is not clear that are they thought about the people and are people able to pay the price difference if price increment happen or not and even are they able to cover their promises?

All experts are saying that if automakers are not able to cover their promises then we will see waves of huge street protests.

"When people trusting the sale and presale plans, means that they are investing in this sector so they will wait for the profit of their investment and in this condition companies can’t fulfill their promises so people will try to revive their money through the government because Iranians are blaming the government for everything.” Amir Hossein Kakaei told Khodrocar reporter.

"In the current situation prevention is the best they can do and presales should stop immediately but it seems to be late for this and even most of previous sales didn’t have support. We hope to not see people losing their money in the future.” He said.

The turbulent car market is heated up with decreasing domestic production, and these days, poor quality vehicles are bought and sold at unusual prices. If this goes on, and the National Competition Council will give permission to raise prices at its meeting, it is unclear what happens to the market. The government does not want to stop pricing the car, and it still wants to take control of prices. And the issue of price liberalization will not be implemented either.

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani