Impact of Car Price Increment on Auto Industry/ Will Auto Industry Units Remain Active?

Khodrocar – after sanctions began and currency rate increased there was a pressure on auto industry and part manufacturers. Increase of materials price against the resistance of the government to keep prices stable made difficult time for the second industry of the country.

Automakers were producing with lose and car’s price was handed between different governmental organizations.

In the critical economy condition of the country this topic was important and even the minister of industry was trying not to mention it in his speech or give a direct order to the organization to finalize the matter. Now part manufacturers are at their last breath due to the delay of receiving their demand from automakers.

"Delay of announcing new prices for vehicles has make the part manufacturers to lay-off, reduce production and even close their doors.” Reza Rezaei told khodrocar reporter. "In a meeting with the minister I asked banks to support the industry of components and asked the minister to finalize the process of pricing vehicles to finish the problems.”

Before, managers of two biggest automakers in the country said that they are producing with lose. They should have keep the customers satisfied and even attract shareholders to keep production and supply working capital.

Now after a long time and different postpones now it has been said that new prices has been finalized in the consumer protection organization and will be announce soon.

However, the way of calculating prices has been approved by the government, and after numerous reviews and, of course, the tacit approval of the president, these prices have been finalized. Prices will be increased by 70 percent for under 450 million IRRs cars to be a relief after most of part manufacturers broke.

Reza Hosseini / CEO of Khodrocar