Continuity in the loss of car manufacturers/market?

According to Tejarat News, in 1400, the country’s two largest car manufacturers, i.e. Iran Khodro and Saipa, lost 22 thousand billion tomans. This means that these two car manufacturers lose 60 billion tomans daily.the world of economy)

Of course, some consider the cause of this loss to be mandatory pricing as well as the government’s interference in automotive affairs. This loss forced the car manufacturers to produce incomplete cars and supply the car dropper to the market. Finally, these measures increased the prices and also increased the price gap between the market and the factory.

This issue led to the privatization of Iran Khodro and Saipa by the order of the President. Of course, no action has been taken to implement this order by the government and car manufacturers.

The impact of losses on the automotive industry

What is the situation of the country’s automobile industry with the increase in the loss of automobile manufacturers?

Amirhassan Kakaei, an expert in the automobile industry, said in a conversation with Tejarat News: “Iran Khodro and Saipa’s losses due to the mandatory pricing are wrong.” Command pricing can solve problems if implemented with the right principles.

He added: But the ordered pricing of the car was done in a way that had high errors. The figures announced by the authorities differed greatly from the actual market price. This action reached the point where car manufacturers were selling their products to the market with a 50% loss.

This automobile industry expert continued: The continuation of the losses of these two automobile manufacturers will weaken the automobile industry, reduce the quality of products, and the inability of automobile manufacturers to develop circulation. Of course, this phenomenon will decrease the value of the shares of these two companies. In the long run, the decrease in the real value of the shares will face the lack of investment development and as a result, these companies will be stuck in the automotive industry. Of course, the government is trying to compensate for these deficiencies by importing cars into the country.

Does it have an effect on the market?

But does this loss have an effect on the country’s market and prices?

Kakaei explained: Of course, the government’s mandated pricing has caused losses to these two automobile companies. But Iran Khodro and Saipa have suffered this loss due to unknown reasons and continue to produce cars. This action has no effect on the market and prices.

He said: People do not lose in this damage. Rather, they benefit from the rent that exists in lotteries.

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