News ID: 4620
Publish Date : 24 July 2023 - 11:00

What will be the fate of the market after the announcement of second-hand imports?

After the promulgation of the second-hand car import law, prices have continued to fall in the car market, but experts in this field believe that the continuation of this import depends on mass imports outside the monopoly and creating public trust in the import of used cars without rent and monopoly.
Khodrocar -  after the general approval of the second-hand car import law by the Council of Expediency and the Guardian Council, finally the Speaker of the Islamic Council notified the government of the second-hand car import law for implementation.

Based on this resolution, Articles 11 to 13 were added to the Automobile Industry Organization Law approved in 1400 and its subsequent amendments. Therefore, according to Article 11, in order to regulate the automobile market, the import of used cars is allowed, and according to Note 1 of this article, technology transfer is not necessary for the import of these cars. Note 2 of this article tells about the method of providing the required foreign currency and supporting domestic production, the technical criteria of these cars (less than 5 years old at the time of entering the customs), and the method of obtaining them and the conditions of importation by natural and legal persons.

Article 13 of this law has made it possible to use the national standards of the country or the standards of the country of origin for the imported cars subject to this law with the approval of the National Standards Organization of Iran and the Environmental Protection Organization, and with this resolution natural and legal persons can import. Also, the import of used cars with a life of less than five years must have standard and environmental approval.

This law has been promulgated while providing currency and declaring its origin is still one of the biggest obstacles to implementation and the decisions made due to this section of the law are still not enforceable. On the other hand, the fate of the market after the import of second-hand cars is also one of the other uncertainties.

Babak Sadraei, an expert in the automobile industry, says in this regard: Importing used cars can be a solution for the inflamed and sick car market, if implemented correctly, but several points such as the amount and number of imported cars are important.

Stating that the car health control tool is also one of the other basic and important things, he adds: since the car import has been released and it has only been a verbal aspect and nothing has happened in practice, it is necessary to import used cars with national license plates as soon as possible so that trust can be established so that it can have an impact on the market.

Sadraei continues: Of course, this is only housing, and in order to organize the market, it is necessary to take other measures, and the important part of these measures is mass import outside of monopoly and creating public trust in the import of used cars without rent and monopoly.
 
This automobile industry expert states: Before the possibility of using the currency available in homes to import cars was brought up, it unconsciously conveyed the message that the government does not have enough currency to import used cars, which will have its effect on the market, although there is a belief that the import of these cars will be left to companies, but it remains to be seen what will happen in practice.

At the same time, the senior managers of the Central Bank have continued to emphasize on the management of foreign exchange resources and believe that in the situation of providing foreign currency for the import of basic goods and medicine, there is no need to allocate foreign currency for the import of local cars from the Arabs.

Now, in this situation, talking about the source of foreign exchange for the import of used cars shows that the government and parliament, no matter how motivated they are to import used cars, but they do not have the necessary tools at their disposal, and this means that we should continue to wait for the implementation of this legal resolution.