Reaction of Auto Market to Price Increment / Request for Buying Car Decreased

Khodrocar – As the automakers had problem to supply parts because of sanctions and vehicle production decreased in recent months, reviewing prices was necessary and it seemed that officials had made a decision but postponed the announcement. Vehicle price increment is certainly but we have to wait if new prices are logical or not?

On the other hand, how will the market react to the price increment but experts are saying if the supply doesn’t happen perfectly then price increment won’t solve the problem of auto industry but it would be a new challenge for it and brokers will capture the market again.

"According to the current condition, price increment is natural because with the current prices the production won’t continue and part manufacturers will suffer a lot. As other products had price increment then cars should have it too because they depend on importing first material and continuing production with new prices will destroy the whole industry.” Shahram Azadi, an expert of auto industry told Khodrocar reporter.

"Each car should have a price increment due to its dependence on foreign companies and we can’t increase the price of all cars at once. For example a vehicle which imports full CKD should have more price increment than a car which depends on foreign for 30 percent.” He added.

"A problem of auto market is lack of supply because of disability in production and if prices become real then automakers would have lesser problems to supply components and cycle of supply and demand will increase the quality of market. The decline in purchasing power, demand for cars will naturally increase as prices rise, but with proper supply, the price difference between the factory and the car market can be reduced.” He said.

"Announcing new prices for local vehicles made more tension in the market. Definitely prices will rise in the next few weeks but some says this increment is 5 percent and other says the price increment is 40 to 60 percent which all of them are not sure.” Saeed Motameni, president of car dealers union told khodrocar reporter.

"Most important thing is reducing the price difference in market and factory and it need a good supply. New prices should be logical and balance to control the side of market.

Khodrocar Reporter: Hadi Sianaki

Khodrocar Translator: Amin Zamani