Unfair action of the competition council in an inflationary economy/necessity to create competition instead of non-economic decisions

Khodrocar - After the unsuccessful 10-year entry of the Competition Council into the field of government vehicle pricing, which led to the loss of thousands of billions for car manufacturers, this time the Competition Council pointed its arrow towards the private sector and, in its interpretation, set prices lower than the current prices. It is trying to control the prices while this failed pricing model increases the possibility of repeating the bitter loss experience in these companies.

Private car manufacturers who are cooperating with limited Chinese companies these days and thanks to the sanctions have been able to produce cars with modern technology and in accordance with international standards by relying on solutions, even though they cost money, which undoubtedly costs It imposes a lot on them. Definitely bypassing the sanctions and importing parts on one hand and currency fluctuations on the other hand, the production has faced staggering costs, and it seems that the Competition Council has determined the assemblies without considering these costs.

Everyone is of the opinion that in a situation where the entry of the Competition Council into the field of government pricing has been followed by unsuccessful experiences, in the near future and with the application of new prices in private companies, we should expect unpleasant events in the field of manpower adjustment or the closure of this companies due to the termination of cooperation with foreign companies. This is while the experts of this industry believe that in an inflationary economy, it is impossible to expect a price reduction, especially in cars that are being produced with modern technology, so instead of applying directive policies, it is necessary to create competition with the aim of reducing prices.

 

"The entry of the Competition Council into the field of pricing in government or even private car manufacturers and the application of directive policies leads to problems in the supply of cars, when in the car industry, a car with the technology of the last two to three decades is assembled and the price is over one billion. Tomans are offered, and imported cars with a lifespan of more than 10 years are bought and sold for more than 5 billion Tomans, certainly the price of assembled cars seems appropriate and reasonable despite being high.” Babak Sadraei, expert of auto industry told khodrocar reporter. 

He adds: In this situation, if the price of a private car manufacturer and assembled cars seems high, the policy maker can, by taking measures such as liberalizing imports and creating competition, a company whose products are not in line with their price in terms of quality. remove the competition, not to increase the cost by banning imports and creating monopoly.

This automobile industry expert emphasizes that private companies do not have government obstacles and barriers, which increases their competitiveness, and states: the more the competition between car manufacturers increases and the product variety increases, the prices in In the future, according to the growth of the dollar, there will be a lower increase, while in a situation where inflation is expected to be 50% in the coming months, how can the car price be reduced in this inflationary economy.

According to Sadraei, entering the field of assembly car pricing is far from fairness and logic.