Approval of regulations for passenger car market/competition council: The market of all passenger cars in the country is exclusive

According to the economic reporter of Fars news agency, the guidelines for the regulation of the passenger car market, the proposal of the specialized car working group were discussed and reviewed in the 543rd meeting of the Competition Council and were unanimously approved.

Following the expiration of the 63rd session of the Supreme Economic Coordination Council of the Heads of the Three Powers dated 28.7.1400, after repeated meetings with the presence of all stakeholders of the automobile market, including representatives of the Ministry of Security, the Securities and Exchange Organization, car manufacturers, relevant associations, the Central Bank, etc. , the vehicle directive was voted on by considering all aspects and was approved by the unanimous vote of the members.

According to this report, it is stated in the text of the regulation of the automobile market: due to the exclusive status of the passenger car market in the country based on the high concentration of indicators, the accumulated demand in the market, the ban or restriction of imports in recent years, the low power of consumer choice, some Laws such as Article 12 of the Family and Youth Protection Law approved on 24.7.1400, Clause (3) Note 7 of the Budget Law of 1401 for the whole country and the Note on the Amendment of Article 10 of the Law on Organizing the Automobile Industry approved on 9.9.1401, which made the monopoly situation of this market more severe , while receiving advisory opinions and suggestions in the automotive working group, the Competition Council based on paragraph 5 of article 58 of the law on the implementation of general policies of article 44 of the constitution and according to the provisions of article 2 and article 7 of the law on organizing the automobile industry in meeting number 543 dated 11.11.1401 It approved the regulation of passenger car market as follows.

* The Competition Council recognized all passenger cars as exclusive

Article 2 of this directive states that the market of all passenger cars, including manufactured, assembled and imported cars, is exclusively recognized and henceforth subject to this directive.

It is also stated in Article 3 of this directive under the title of pricing directive:

The base of the car price adjustment is based on the pricing criteria approved by the Price Determination and Stabilization Board, which is calculated by the support organization. The results of the calculations are presented in the automobile working group and approved by the competition council and are enforced by the automobile supplier.

Note: The calculated price in this paragraph is the car supplier’s price without considering the consumer’s costs (such as value added tax, third party insurance, numbering duties and postage and delivery charges, etc.).

With the aim of institutionalizing a competitive environment for each car, based on the price of at least 3 foreign cars of the same class, quality and standard, a price is extracted and announced as a competitive base price. The Competition Council, through the Ministry of Security, will use the capacity of domestic professional institutions, depending on the case, to use valid external authorities to determine the comparison criteria, which will be summarized and the basis of action in the meeting of the automobile working group in 6-month or one-year periods.

Note: The car supplier can propose cars of the same class of car products in the world market to the car working group.

* Demand side conditions

In article 4 of this instruction, the conditions of the applicant are mentioned, among these conditions, the minimum age of the applicants to buy a car is 18 years and the requirement of a driver’s license.

It is also stated in this section that applicants who have an active license plate cannot register and buy a car, there is no possibility of peace in the contract, there is no possibility of re-registering the purchase of a car for legal entities.

The car supplier is obliged to adopt and implement preventive methods to prevent the transfer of the document for at least one year, including mortgaging the car document.

* Supply side conditions

Further, in Article 5, the conditions of the supply side are also mentioned, among the conditions of supply in this directive is that car manufacturers are required to announce the production plan by month to the Competition Council and the Ministry of Security at the beginning of each year.

Note 1 of this paragraph states that the Ministry of Safety continuously monitors the realization of the production plan and in case of non-fulfillment, proposed solutions to solve the problems and challenges of the realization of the production plan will be presented in the automobile working group and the results will be announced to the competition council.

In Note 2, Clause 1, Article 5, it is stated that the support organization continuously monitors the supply situation and obligations of car manufacturers and submits the said report to the car working group.

In paragraph 2 of Article 5, which describes the conditions of the supply side, it is stated: In order to improve competitiveness and regulate the supply of automobiles, the Competition Council, in cooperation with the Ministry of Security, annually determines the amount and type of automobile imports. It is also stated below that any change in the price of the car due to the installation of options or parts that is not mandatory (and based on legal requirements) must be notified to the support organization and its price effect sent to the car working group for approval and then to the competition council for the preparation and notification of the announcement. be made

It is further stated that car suppliers register and sell cars through the integrated system of car sales, and suppliers will not have the right to pre-sell products whose price has not been determined.

Instructions for adjusting the car market from here Is visible.

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