Recession Rules the Car Market

Khodrocar – Last week the price of vehicles in some cases dropped between 3 to 10 million Tomans, yet some experts believe that the prices are not reduced as they were expected and it has effected just some vehicle segments in a positive considerable way.

There are different groups of experts with different attitudes toward this price reduction. One group believes that these reductions are caused due to religious events in three months of the year. Other group believes the reduction in prices are because of pre-sales of vehicles conducted by the domestic car makers. That is while some other people say that this reduction in price is just on paper and there is no vehicle yet in the market to affect the price tags.

Some activists of the car market say the reason why the prices dropped was because nobody bought the vehicles with that high price tag. When SAIPA Pride reach 40 million Toman from a 25 million Toman price tag, only a very little number of people bought the cars. There was no demand for such price and therefore the prices had to be dropped.

Another activist of the automobile says: "There was no demand because people did not have enough money to handle such high price. The market did not have the potential to bare such increment in prices. Being close to religious events of the month caused the demand to drop as well.”

"The greatest drop in prices belongs to IKCO with 4 million Toman drop and then SAIPA with 3 million Toman drop. Imported vehicles face inflammation these days but the news regarding the release of the vehicles inside the customs caused recession in the market of these vehicles.” Added the activist. 

"Usually the vehicle prices drop when the period of this religious events come every year because the demand rate drops. This year the unrest of exchange rate, pre-sales of car manufacturers and governments’ decisions were also responsible for the recession in the car market.” Said activist.

"Whenever there is an unrest or increment in price of raw materials there will be a parallel unrest in the market as well. People become eager to buy cars. So there must be some observation over the stability of the raw material costs so the dealers cannot effect the market.” Added the activist.

Khodrocar – vehicle price differentiations in the last week shows some drop in price of some vehicles while some other cars were fixed on the price. Yet the market has its fingers crossed to have stable prices without any interference of dealers.

Khodrocar Journalist: Negar Mirkarimi

Khodrocar Translator: Mostafa Anisi