Will The Price of Over 500 Million IRRs Cars Increase?

Khodrocar – Tiggo 5, Arrizo 5, MVM X33, Jac S5, Lifan 820, Suzoki Vitara, Hima S5 and BYD S6 won’t receive a license plate duo to the governmental approval, which says automakers have to retire an old car in order to produce a new car which have a 8.5L/100 km fuel consumption range.

In the past years, automakers were bypassing this law, however they had to obey it back then. Also, most of these cars are Chinese productions which assemble in Iran and Iranian companies doesn’t have the base technology of these products.

Vehicle scrapping centers are buying older cars, then give back the retire approval to automakers for 27 to 30 million IRRs. It means that automakers will increase the product's price tag about 30 million IRRs. Now, we have to see that if the automakers add this number to their profits or the product's final price.

The following table shows that price of these cars is out of national competition council law and automakers can increase the price without problem. 

 "There is no positive request for some of these cars in the market and it seems that increasing the price won’t affect the market so much”. Farbod Zave said to Khodrocar reporter.” This list will get bigger in the near future, as the other local productions will be added to it. In the case of increasing the local vehicle prices, national competition council will approve it.”

"Globally, the fuel consumption range and emissions of an automaker is counted as a group of products, so automakers will decrease the average of their vehicles fuel range by producing hybrid cars.” He added. " Eight cars should be retired per one imported car that will increase the final price. The government should make difficult laws about fuel consumption because high fuel consumption range is not acceptable in 2017.”

"Importing cars as CKD with old technologies are the negative results of wrong tariffs. And it will affect the national economy.” He mentioned. " The laws should be harder in order to act local automakers.” 

As it seems, the recent act of government and traffic police is positive and they have to be harder on automakers.

Khodrocar Translator: Amin Zamani