Tire Producers Challenges in Sanctions/ The Chance of International Markets Gone for Producers

Khodrocar – Despite the allocation of 42000 IRRs currency for importing first materials of tire manufacturing but producers have to import some of their materials with currency of free market so they request for 30 percent price increment in tire products.  

This happened while in the recent months activists in transportation field are talking about the shortage and high prices of tires and the problem has not solved for the bus and truck’s drivers. Therefore, tire is now on the list of forbidden products for export in order to solve the problem of inner demand.   

But it’s not clear that while shortage and high price of tire is a problem in the transportation field, consumer protection organization can increase the price or not?

"The price of first material has increased to 5 times and that is unbelievable. That is the reason why manufacturers are asking for price increment. Not all of first materials are in 1st priority of import and most of tire price increment is because of local materials. Petrochemical materials have got expensive.” Mostafa Tanha told khodrocar reporter.

"Sometimes international banking make problem for us and we are can’t use the allocated money. For instance, it’s been a while that Chinese banks are not accepting Iranian money and Indian are the same, so factories are using their resources and producers have to buy material in free market.” He added.

"Ban of exportation won’t reduce producers eager but working in international section in not easy and needs time so when we take a step back is hard to get back to exporting situation again because other competitors will fill our place.” He said.

Tire problems have affected the country's transportation sector for several months, and the Ministry of Industry, Mine and Trade has also tried to solve the driver’s problem both in the heavy sector and in the riding sector with various approvals to find a way to improve the situation. But the rise in domestic raw material prices and the problems of currency exchanges have exacerbated this issue before any other problem, and the government needs to find another solution to eliminate these barriers to production.

Khodrocar Reporter: Sepideh Ghazi Nejad

Khodrocar Translator: Amin Zamani