Vehicle Import Dilemma due to Prohibitions

Khodrocar – back in August 15th, the ministry of industry, mine and trade bound the domestic vehicle producers to scrap a worn-out vehicle instead of producing every car with over 8.5 liter per 100 kilometers of fuel consumption. The enactment was cancelled throughout an official letter from Ali Larijani, Chairman of Iran Parliament because it was declared as illegal. But the police department stopped registering vehicles license plates with fuel consumption over 8.5L/100Km right based on the very cancelled enactment. The happening shocked not only the domestic carmakers but also affected the market of the domestically produced vehicles.

On the other hand, right one month before the new minister of industry, mine and trade, Ali Shariatmadari become active in his duty, the vehicle import registration website was shutdown leading to foreign vehicle import ban. Vehicle importers hoped that the situation would be eased with the ban lifted by the presents of Ali Shariatmadari, but nothing similar happened and yet after two months of his present in the office as the new minister, the vehicle import registration website is closed and no new vehicle registration is available due to the excuse of the new instruction provision.

Now market of the domestically produced vehicles of Iran is facing a great increase in priced as a crisis showing that the ministry of industry, mine and trade is incapable of expert decision making in the field of automotive industry.

Such inconstancy in automotive industry decision makings are while economy experts believed that such inconstancies and overnight decision makings was exactly what damaged the ninth and tenth government of Iran and now this plague is transmitted to the twelfth government, the government that actually believes in foreign investments as the key factor of economic development of the country.

But the foreign investor is absorbed to a market that along having enough potentials to be invested on, provides security of investment with the help of solid laws, not throughout overnight and sudden decisions made to set a new ban. It seems that this important tip has been forgotten in the twelfth government.

The ban of vehicle import was set to force foreign carmakers to invest in Iran’s car market. On the other hand, it is some imperfect copy of Chinese paradigm on the very same matter. Yet, throughout such decisions made by the ministry of industry. Mine and trade, not only it is not possible to hope that well marketed import vehicle brands to follow with up such decisions but also foreign carmakers present in Iran’s market would also hesitated to maintain their presents.

Khodrocar Reporter: Asal Dadashloo

Khodrocar Translator: Mostafa Anisi