500 million imported cars on the way to Iran?
As the previous government was unable to control the price of cars in the market, car prices have been rising since 1997, and the challenge continues to the point where the Minister of Industry, Mines and Trade did not reach this turbulent market either.
The price of Iranian cars is increasing in line with foreign cars, and the people who decide the car market are now the only observers of the situation, because dealers and intermediaries have penetrated in this area and have easily set prices in the market. Those who work in the exhibitions pointed the arrow of accusation in two directions, one of which is the car sales companies, which number more than 2,000 sets, and the second is the car manufacturers’ agencies. Exhibitors say that we are sure that these two groups determined the price of cars in the market. These statements are made in a situation where some blame the exhibitors for the high price of cars.
Since 1997, car prices have risen and no policy has been successful in controlling prices. Government pricing, lottery policy and allocation of cars to real applicants, weekly supply of cars, etc. have not worked at any time, and people are witnessing changes in car prices every week and even every day.
Most experts and market participants suggest one way to overcome this commotion and opportunism of some, and that is to import cars. Of course, the liberalization of car imports on the condition of exporting cars and parts was approved by the parliament late last year, and after objections from the Guardian Council, the Expediency Council approved the import of cars.
Accordingly, the government is allowed to import between 70,000 and 100,000 vehicles this year. In the days when it was not clear what the future of the parliament would be, the Minister of Industry, Mines and Trade reminded that the ban on car imports for 1401 would not continue.
The ban on car imports was renewed every year (since 1997) by the leaders of the forces, but since last year, with the improvement of the country’s foreign exchange earnings and the difficult conditions prevailing in the car industry, the officials of the Ministry of Silence predicted that car imports would begin in June this year. Now that the first half of May has passed, all eyes are on the Ministry of Industry, Mines and Trade to make the final decision on car imports.
6 brands that can be imported for 10 thousand dollars
Mehdi Dadfar, secretary of the Automobile Importers Association, told Iran about what brands he could bring into the car market if Iran wanted to be an importer of non-luxury cars: To buy, they should look for importing a car with a price of less than 10 thousand dollars. “Renault, Datsun and Tata.”
“Iran has 85 standards for cars, and that creates challenges, so if the standards are mandatory,” he said, noting that the brands mentioned range from $ 7,500 to $ 10,000, all for 2022. It was not 85 that experts believe a significant part of it does not apply to Iran and many countries do not have such standards, we can import cheaper cars. Is there any insistence that the 85 standards be implemented in Iran in situations where they have no application and even many countries did not require it? “Standards should be implemented. In this situation, both the price of domestic cars will decrease and cheap cars can be imported into the country.”
Luxury has a definite definition
“If we want to import other than famous brands, the number of cars is infinite and there is a very large market,” Dadfar said. Therefore, the government must first decide how and by what mechanism it wants to pursue car imports. “If the goal is to calm the market and bring cars to the people, there is a variety of cars at reasonable prices and even lower than the prices of domestic cars in the market.”
“Some people say that if imports are liberalized, importers should not look for luxury cars, but it should be emphasized that cars that enter the country are not luxury at all,” he said, noting that luxury cars are defined all over the world and not every foreign car. And they happen to be ordinary cars. “A car worth 400 to 500 million tomans is not a luxury car, but when various tariffs are closed on these cars, their prices go up and some people think that a luxury car has entered Iran.”
We are looking to increase production
“In Iran, we are looking to increase production, but in other countries there is talk of drone and electronic car production,” he said. Which was mentioned; Unfortunately, the Iranian car industry is in the aquarium and has all kinds of support, so it is natural that it does not perform well in such conditions. “It must be admitted that supporting the car industry by closing the door on imports is wrong.”
50% price reduction in two years
Referring to the import of used cars, he said: “Countries have no ban on the import of used cars, and perhaps the countries of Georgia, Azerbaijan, etc. have gone in this direction. If the government wants to import used cars, the price of the car in the market will be broken, for example, the 2016 Megane is around 500 euros, and there are even much lower prices. “Abroad, a zero-kilometer or used car will be reduced in price by 25 percent and two years by 50 percent if it is one year old.”
Meanwhile, Saeed Motameni, president of the Union of Exhibitors and Car Dealers, recently said that the only way to control car prices in the current situation is to import cars, adding: ; According to what is seen in the media from car production statistics, production in the past month has not been good and even lower than the same period last year, so it can be concluded that there has been no increase in production. “In addition to the statistics, the supply situation in the market also shows that we are facing a decrease in supply, so in these circumstances we can not expect a decrease in prices.”
“If a quality car is imported, automakers will have to improve the quality of their products. The problem in the car market is monopoly and supply constraints. Production costs are high, so consumers have to pay huge costs to buy them.”
Given the problems in this area, it seems that only the Ministry of Silence can untie the knot that has fallen into the car market. If this ministry decides to restore calm to the car market, by giving permission, it can compensate for the shortcomings of the previous government and make the people self-sufficient. Otherwise, the car market will continue to be tense and prices will be set that no one can believe.
Examining the price list of foreign cars shows that Iran can import cars that have the highest standards and are cheaper than the current cars in the market. The table shows some brands and current market prices. If the Ministry of Silence decides to import cars and zero tariffs, these cars will continue to travel on the streets of our country, and carmakers will be forced to continue producing cars in a competitive environment.