Will Adding 90K Vehicles Balance the Market?
Vehicle price tag increment and the hoarding charges of the two major car makers of the country caused the two car makers to promise pre-sales of 90 thousand vehicles in 45 days in order to balance the market and reject the hoarding accusations against them. The question is, does this act lead to rebalance of the car market?
Khodrocar – increment of car price tag, from 5 to up to 445 million Toman differentiation between the companies’ retail price tag and the price in the open market for domestic vehicles through past few months dragged lots of attentions. There also were pictures of hoarded vehicles in car makers huge storage spaces, car makers claim that what happened to vehicle price tag are all connected to dealers and due to turbulent market.
IKCO and SAIPA managers reject the accusations regarding hoarding of vehicles and believe they will rebalance the market very soon by starting to sell Lots of vehicles.
Deliver Previous Vehicles First, before New Pre-Sales
The 90K vehicles are equal to the production figures of only two months of IKCO and SAIPA, The real question is that does this amount of vehicles capable of rebalancing the car market in only one and half months?
"Various factors affect the price tags in the market. When the exchange rate increases suddenly in a short time, there definitely cannot be any prediction of the car market circumstances in upcoming 45 days.” Said Saeid Motameni, chairman of showroom owners and car sellers union.
"Adding lots of vehicles to the market this suddenly might rebalance the market jut for a short while but there will be price differentiation in the market after all. Exchange rate must become balanced so that vehicle price tag becomes stabile as well.” Said Motameni
"It is said to be all counted vehicles will be pre sales and pre sales does not affect the market much because it is better to deliver pre sold vehicle from last months to the customers before pre sailing any other vehicles. ” Added Motameni
Khodrocar – two nights ago, both SAIPA and IKCO CEOs announced about the pre-sale of 90 thousand vehicles and both rejected the accusations regarding hoarding any vehicles. Now we must wait and see how the market is going to be affected since these vehicles are pre-sold. Also we must observe how injection 90K vehicles to the car market is going to break the price differentiation between the retailers and the open market.
Khodrocar Reporter: Negar Mirkarimi
Khodrocar Translator: Mostafa Anisi
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