Is a 20% increase in car factory prices on the way? / Does it have an impact on the market?

According to Trade News, last year, carmakers decided to increase the prices of their products. But the president opposed the decision and returned the factory products to their previous prices. But soon after, carmakers announced an 18 percent increase in car prices.

Now, Siamak Moghtaderi, a member of the board of directors of the Association of Homogeneous Industries of Auto Parts Manufacturers, has said: “Considering the increase in exchange rates, raw materials and wages, if we assume that car pricing is correct, car prices will increase by 20% this year.”Car News)

Is this price increase reasonable?

Babak Sadraei, an expert in the automotive industry, told Tejarat News that the increase in car prices indicates the weakness of the country’s economic structure and is affecting other areas of the country’s economy.

“But if the cost of producing a car increases and the government does not agree to a price increase, the accumulated losses of the car will increase,” he added. Many automakers are also going bankrupt.

Does the government agree to increase car prices?

Does the government agree to the price increase or does it prevent it?

He added that the economy should not be grammatical. It should also be noted that the government ordered an increase in wages. To pay these wages, companies must add to the cost of their products. As a result, high inflation will be experienced in the country this year, with all goods subject to price increases.

Does it have an impact on the market?

Regarding the impact of the government’s forced pricing on rising costs, the car expert said: “If the government follows orders, the carmaker will be forced to reduce production and supply of car droplets to the market.”

He continued: “In these circumstances, more rents are formed in the country and the black market becomes more.” So ordering will not work.

Sadraei said: “It seems that with the increase in the price of products due to the accumulation of costs, it will not have an effect on the quality of cars and cars will be produced with the previous quality.”

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