Factors of high car prices in the country/ customers’ criticism of car products
According to IRNA’s report from the Ministry of Industry, Mines and Trade, “Manochehr Lagi” in an interview, emphasizing the strengths of our country’s automobile industry in the region and the world, added: Our three positive features in the region include science and technology, which according to experts And we are among the top five countries in the world for young engineers. The second feature is the cost of labor, which is lower than other countries in the region. The countries of the region are higher and in some areas we are lower.
Referring to the fact that according to the report published by the international institute “Fitch Solutions”, Iran had the highest efficiency in car production among North African and Middle Eastern countries in 2019, he continued: Our strengths in the world are the same as our strengths in the region. and along with India and China, we are among the countries with low production cost in car production, and we can use the existing advantages to produce cars and car parts at a defined quality level, cheaper.
Cultural and media activists should change people’s view of Iranian cars
He also said about the existing criticisms of the country’s automobile industry: most of the criticisms are justified and we accept them, but the other part is related to negative and extensive advertisements in the market.
Deputy Minister Samet added: In general, the atmosphere is negative towards Iranian car production, and if it is produced in the highest quality, it will still not be successful compared to foreign products. change in society.
The Deputy Minister of Transport Industries of the Ministry of Industry, Mines and Trade emphasized that all efforts should be made to achieve a product that is a national pride and reach better stages and further development. down and the result will be the migration of industrial elites abroad.
Stating that the performance of car manufacturers is not accepted by the people, Raqiy stated: Customer criticism of the products is acceptable; Part of these problems are related to the management of car manufacturers and another part is caused by environmental conditions.
He pointed out: One of the important parameters for the customer is the up-to-dateness of the products, which due to numerous problems, 80% of the products are from 15 to 20 years ago, and the production of products from the last five years is limited. Therefore, compared to today’s products, the superiority of new products is one of the factors in the formation of the mentality of the lack of domestic product quality in the mind of the customer.
Three ways to get a quality car
Regarding the high price of products due to their low quality and the monopoly of two domestic car manufacturing companies, the vice president of transportation industries of the Ministry of Industry, Mining and Trade said: “The new strategy of the government defines three paths for us.” One is to import foreign products of the same class as the domestic product, and compare them with each other, to determine the differences so that the domestic producer moves towards improving the product and new technology.
Lagi added: The second path is that we have two car manufacturing groups, the first group has 90% of the market and the second group is private car manufacturers that have a low circulation, and we are trying to increase the capacities by creating a consortium between private companies, because they are assembly products. And they offer more up-to-date products, and due to their higher quality and price, they are more popular with their audience.
He added: The third path is to update the existing technology in the automotive industry, which will lead to the removal of old products and the introduction of new products. For example, Tara and Shahin cars have been relatively able to satisfy the customer in terms of quality, and they also attracted the attention of the audience at the Russian Automobility Exhibition, and the possibility of their export and entry into the competitive Russian market is high.
The vice president of transportation industries of the Ministry of Industry, Mines and Trade also stated regarding the price of the car: the Pride car has been discontinued and a product like Quick has replaced it, which is in a better condition and its price is about 180 to 200 million tomans, that is, about It will be 6 to 7 thousand dollars.
He pointed out: In car import, the focus is on cars under 10,000 dollars that are modern, with good design, innovative methods and produced at a low price. Our future production will also be the same type of imported cars that will replace the Quick, for example.
Eliminating the lottery by the end of this year
Rogi also stated that with the increase in circulation in the private sector and large automobile manufacturers, car allocation and registration will be easier, he continued: The decrease in demand shows that the car has been supplied in sufficient numbers and by the end of this year, the lottery will be completely eliminated. will be. The Ministry of Industry, Mines and Trade is also very sensitive to the time commitment of the car manufacturer and determines the amount of car supply based on the commitments and delivery time, and with the increase in car production and import, the shopping queues will disappear.
In response to a question about the sharp difference between the cost price of a car and its sale, he said: Based on the monitoring of car pricing, we can say that 85 to 90 percent of the car price is related to raw materials and the production process, after that, there are changes and increases in wages. which has a three percent effect and another reason is that Iran’s financial channels for foreign purchases are not direct and it is forced to use other channels, so 10 to 15 percent of the financial cost is effective, which causes the price of cars to increase and all price control factors It is not in the hands of the automaker.
The deputy of transportation industries of the Ministry of Industry, Mines and Trade explained: If we pay attention to different productivity methods, we can control the price increase, but so far no coherent and serious work has been done in this field. He added: One of the reasons is that we have two types of technology in the car; One is a product and the other is the technology of the production process, which causes the reduction of the production cost, which we were unaware of the second part, and they were far from the mentality of the car manufacturing managers and did not know about it. Based on this, in the new development program of the automobile industry, we have paid attention to the advancement of these two types of technology that have led to the productivity and reduction of production costs of the world’s automobile manufacturers.
Rogi also named the document on the transformation of the automobile industry as one of the government’s important policy programs, which will increase the technological mobility of automobile manufacturers, improve quality, and reduce the price of automobiles.
The importance of car production in terms of added value and employment
Regarding the financial loss of car manufacturers and consumers and the substitution of car imports instead of production, he said while emphasizing two policy factors and a strong management team: the market is facing 1.5 million demands. If the price of each car is considered to be 10,000 dollars, it becomes 15 billion dollars, and taking into account the higher demand, 30 billion dollars of funds are needed to import cars, which does not exist.
Logically stated: car production plays the first role in two key factors in Iranian industries; One is added value and the other is employment. In this regard, the automobile is considered the first class industry compared to petrochemicals, household appliances and other industries, so it is of great importance at the national level.
He enumerated the wide scope of the duties of the vice-chancellor of transportation industries of the Ministry of Industry, Mines and Trade and said: automobile manufacturing, including light and commercial vehicles that carry passengers and cargo and vehicles such as trucks, tractors, buses and minibuses, electric, rail, air, sea, intelligent transportation whose technology is used in other fields, the productivity of industries, new products and the use of information and telecommunication technology to reduce traffic, among the duties of this deputy in the Ministry of Industry, Mines And business.
This responsible official pointed to the position of Iran’s transportation industry in the world and added: In the evaluation that was done in 2019, in terms of production, we fell in the 19th place in the world, while the year before that, we were in the 18th place. Based on this, we are trying to reach the 12th to 15th place in the world in 2023 by planning and realizing the plans.