From Liberalizing the Price to Market Engineering
Vehicle price increment for local products has become a hot topic in the auto industry and automakers effort for making the prices real due to the dollar price increment and first materials left resultless. Pricing has become a challenge since changing the pricing organization from national competition council to consumer support organization has been said. Is this changing have a result?
Khodrocar – Governmental and non-governmental organizations said a lot about organizing the vehicle market but they aren’t doing anything in the market. We can mention the speech of IDOR president in this case. He said that Economic Coordination Council approved price increment to increase the price according to consumer support organization. However, national competition council is insisting on pricing vehicles and announced to filed a complaint with the Administrative Justice Court on this matter.
According to experts this uncertainty in the pricing field is a huge disadvantage for automakers and these problems will continue if the pricing won’t get real.
"After a while everyone realized that increasing prices is mandatory but brokers abuse the market during this time and prices increased in the free market. Now governmental officials are realizing this matter but it’s too late.” Amir Hossein Kakaei, an expert of auto industry told khodrocar reporter.
"National competition council has its own special rules but changing the responsible organization would take a long time. I think the Administrative Justice Tribunal will respond positively to this issue and demand from the National Competition Council." He added.
"It is not clear that why National Competition Council is against the auto industry. It should even be noted that part of the inflation is not part of the currency market and domestic raw materials are being sold at high prices. The lack of coordination in the government and its components is one of the problems that make the automotive industry a problem.” He continued.
Although Mansour Moazemi has approved that the current prices are making problems for automakers but the reason of this delay is not clear. If price correction happens then it would be for the second half of the year. The question is, what is the mechanism used to determine new prices. As the national competition council was responsible for pricing products under 450 million IRRs and it became monopoly.
Another issue that has been raised is that some scholarly experts say competition from car pricing is a factor in monopoly aggravation and say that the competition council may be a market engineer from automakers. We need to hope that the government will immediately announce the new car pricing as soon as possible so that all suspicions and suspicions will end there.
Khodrocar Reporter: Sepideh Ghazi Nejad
Khodrocar Translator: Amin Zamani
According to experts this uncertainty in the pricing field is a huge disadvantage for automakers and these problems will continue if the pricing won’t get real.
"After a while everyone realized that increasing prices is mandatory but brokers abuse the market during this time and prices increased in the free market. Now governmental officials are realizing this matter but it’s too late.” Amir Hossein Kakaei, an expert of auto industry told khodrocar reporter.
"National competition council has its own special rules but changing the responsible organization would take a long time. I think the Administrative Justice Tribunal will respond positively to this issue and demand from the National Competition Council." He added.
"It is not clear that why National Competition Council is against the auto industry. It should even be noted that part of the inflation is not part of the currency market and domestic raw materials are being sold at high prices. The lack of coordination in the government and its components is one of the problems that make the automotive industry a problem.” He continued.
Although Mansour Moazemi has approved that the current prices are making problems for automakers but the reason of this delay is not clear. If price correction happens then it would be for the second half of the year. The question is, what is the mechanism used to determine new prices. As the national competition council was responsible for pricing products under 450 million IRRs and it became monopoly.
Another issue that has been raised is that some scholarly experts say competition from car pricing is a factor in monopoly aggravation and say that the competition council may be a market engineer from automakers. We need to hope that the government will immediately announce the new car pricing as soon as possible so that all suspicions and suspicions will end there.
Khodrocar Reporter: Sepideh Ghazi Nejad
Khodrocar Translator: Amin Zamani
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