News ID: 4477
Publish Date : 05 December 2022 - 10:16

Inconsistency of determining the auction price with the directive policies

In the situation that with the increase in the supply of automobiles to the commodity exchange, the hope for the profitability of automobile manufacturers and eventually to balance the supply and demand had increased, the decision of the parliament's industries commission to enter the competition council in the pricing area of the commodity exchange should be reversed by the parliamentarians in Implementation of the plan to organize the automobile industry.
Khodrocar - The members of the parliament in the last year's meeting, insisting on the approval of the car regulation plan, called one of the main clauses of this plan the sale of cars in the stock market and emphasized that by realizing the discovery of the price of cars in the commodity exchange, while making the car manufacturers profitable and getting out of their losses, they witnessed the elimination of the middleman.

Now, with the approval of this plan, despite many objections, this clause entered the implementation phase, which, contrary to expectations, brought good achievements and encouraged car manufacturers to supply more, as before only luxury and limited edition cars were supposed to be offered in the stock market. However, the acceptance of this issue by car manufacturers made the entry of Peugeot 207 into the stock market, and plans have been made for the entry of new cars.

But in the meantime, the Industries Commission has announced that the pricing in the stock market and the discovery of the initial price will be done by the Competition Council, while the nature of the stock market does not accept mandatory pricing, and under the conditions that were expected with this sales model, we will see the removal of pricing. Let's be clear, the decision of the members of the parliament rejected these notions.

"From the beginning, there was a concern that by offering a car in the stock market, the control of the stock market would be attempted, which is the worst possible action because a tool is used as a competitive tool, but with wrong actions, the tool will lose its efficiency, which upon entering Commodity Exchange Competition Council, this is happening.” Amir Hossein Kakaei, expert of auto industry told khodrocar reporter.

"The work of the stock market is accompanied by specific rules that sell the product at the highest price. In such a tool, pricing will have no meaning, and the only thing that the competition council can do in the stock market is to confirm the existence of competition, not pricing.” He added.

"No one has the right to determine the auction price and this is a very dangerous issue, while the Ministry of Security and car manufacturers are making a good progress in the field of supplying manufactured cars in the stock market, so that the supply of a thousand Peugeot 207 units in the stock market last week not only It did not increase the price in the market, but it led to the profitability of the car maker, so that the desire to increase the supply has increased.” He continued.

"With this process, we can hope that in the long term, the production of the car manufacturer will increase, and with the increase in supply, we will see a decrease in the total price, although it will take time.” He said.

"The parliamentarians are focusing on the market and are looking to control the market price, while everyone has come to the conclusion that the problem will not be solved by focusing on the market, but the problem will be solved by focusing on production and helping it, in this situation with Freeing the price through the stock exchange, automakers must be responsible for production, so the recent decision can be considered a new work policy.” He added.

"Now that the problem of the market is being solved and if the officials do not interfere, the work will go well.” He mentioned.

Referring to the basic problems of the country, such as the supply of raw materials, liquidity, foreign exchange policies and heavy inflation, Kakaei states: if these problems are solved, we will see an increase in production, but instead of solving the challenges, new challenges are being created. So that the entry of the competition council into the pricing process of the commodity exchange will mean several months of dialogue, which will eventually lead to confusion in the market.

He considers the main task of the competition council to be guaranteeing competition instead of setting prices and says: guaranteeing competition means regulating competition, market and industry and doing legal work and managing the market, and this is something that should be done, but no one is looking for it. is not.

Emphasizing that experience has shown that pricing does not lead to competition, Kakaei clarifies: Mandatory pricing does not lead to competition, but tariff, import and industrial policies lead to competition, and mandating pricing leads to competitiveness. and only government companies are willing to enter this field, and private companies will not be burdened by this issue.