Is the promise of eliminating the car lottery enforceable?

According to Tejarat News, Reza Fatemi Amin, Minister of Industry, Mines and Trade, said: “The demand for cars in the country is 1.5 million units, and what is produced this year is one million units, and we will have a shortage of 500,000 units.” This deficiency will be compensated next year.

He promised: “According to this plan, the increase in production will be in line with demand, and with this process, the car lottery in 1401, which has a short time left, will be eliminated.”

Is the car lottery elimination plan practical?

Saeed Madani, former CEO of Saipa, told Tejarat News: “Despite the increase in the price of factory cars, there is still a price difference between the factory and the market.” Under the current circumstances, there is no possibility of eliminating the lottery at the beginning of 1401.

He added: “This price difference between the factory and the market has created an incentive for people to register their cars, even if they do not need them.”

“As long as the pricing system is like this, demand will be high,” he said. This high demand can be solved by lottery, which is a temporary treatment.

How is the elimination of the lottery achieved?

The CEO of Saipa stated: With the 18% increase in car prices, the difference between the factory price and the market has decreased. The real consumer will only buy the car when the price difference is zero and production increases.

Madani added: pricing should be done in the margins of the market. In this situation, the necessary incentive is created for people to invest in the field of automobiles. The very large rents in the market are also lost.

He continued: “Even if 500,000 cars are produced next year, it should be done alongside the pricing system.” Automakers have the ability to produce this amount of cars. If the liquidity of automakers is helped, production will increase.

Madani said that if the demand is less than the amount of production, the prices of car manufacturers’ products will also decrease. This regulates the market price. In this situation, carmakers try other ways of selling in order to be able to offer their products.

What effect does the elimination of the lottery have on the market?

In response to this question, Madani said: “As long as there is a price difference between the factory and the market, eliminating the lottery will not solve the problem.” If the lottery is eliminated, automakers must find a way to sell the products to the real consumer. Various cases have been proposed for this issue but it has not been successful.

He added: “The total number of cars offered in the lottery is less than one million, but about 40 million people register in the scheme, which shows that the lottery has not been successful.”

According to Madani, it is possible that Minister Samat decided to cancel the lottery for this reason.

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