Mandatory pricing balances the car market for 6 months! – Tejarat News

According to Tejarat News, it was at the beginning of this month that the Competition Council, after announcing its guidelines for the car market, requested the stock exchange organization to stop the supply of cars through the commodity exchange.

However, the stock exchange organization announced that the supreme council of this institution will make a decision on this matter. Finally, on the 18th of February, the Supreme Council of the Stock Exchange held a meeting and emphasized on the continuation of the car supply in the glass hall.

It was not long ago that it was announced that the supply of 3,500 cars will be carried out in the commodity exchange, and this was in the conditions that the competition council had determined in its instructions that all cars include exclusive production, assembly and imported cars and are subject to the instructions and in the paragraph Another emphasized that car supply should be done only through the integrated car allocation system.

In this environment, the question is raised whether the instructions of the competition council have been abandoned or whether the decision of the competition council to regulate the automobile market is still standing?

What does the new instruction of the Competition Council say?

Mahmoud Dodangeh, the vice-chairman of the Competition Council, claims that the message of the instructions of the Competition Council was reflected upside down and some capital market managers and car manufacturers played a key role in this regard.

He said about it Online news He said: It was created in such a way that it seems that the pricing competition council is going to take into consideration the order that happened in the past years, and therefore, based on this wrong impression, the car manufacturing companies will have extensive losses. This is despite the fact that the instructions of the competition council were completely contrary to this framework that was mentioned.

Dodangeh stated: The previous directive of the council regarding the car market is fundamentally different from the current directive. The previous directive was set based on the natural conditions of the economy and on the basis of the price cap model, which could be a good model, but due to the abnormal conditions and various shocks in the economy in recent years and the interest of the policy makers to control prices by order, it is practically not possible to adjust the prices and the loss of car manufacturers Increased.

He added: Although it seems that the increasing losses of car manufacturers have other reasons. Anyway, in the new era, the competition council decided to accept the cost price model as the basic model despite its weaknesses; Although in the future, by adjusting the model based on the balancing model, it will correct the weaknesses of the cost model.

The Vice Chairman of the Competition Council stated: It seems that if the car manufacturers and people of the capital market read the Council’s instructions carefully and with a fair approach, they will definitely avoid making hasty comments.

The dream of eliminating monopoly

In the meantime, there was a point in the new directive and it was criticized that it was said that the market of all passenger cars, manufactured, assembled and imported cars is exclusive and these cars were included in the competition council directive. But isn’t the nature of the competition council to eliminate monopoly?

In this regard, Dodangeh stated: Basically, one of the important tasks of the Competition Council is to investigate and monitor markets based on different models and to detect monopoly, so that it can regulate monopoly markets based on the indicators that measure the level of competitiveness and monopoly.

He added: This is one of the inherent duties of the Competition Council. Diagnosing the monopoly of the car market in Iran does not require deep economic knowledge or a very extensive expert review. You can refer to any Iranian citizen and you can infer the severity of the monopoly in the car market.

The Vice Chairman of the Competition Council said: Car applicants in Iran feel the monopoly situation in this market with flesh, skin and bones, two large and dominant car manufacturers, severe restrictions or import bans, etc. are clear signs of monopoly.

Dodangeh stated: Anyway, one of the special tasks of the competition council is to study the conventional indicators of market competitiveness and make decisions about monopoly markets and carry out regulation according to article 58, paragraph 5 of the Law on the Implementation of the Policies of Article 44 of the Constitution, and there does not seem to be any contradiction. .

He added: It seems that it is a matter of reflection and regret that sometimes people with big titles challenge the axioms of economics or the principles of governance. In any case, the legislator entrusted the diagnosis of monopoly to the competition council and the competition council made this diagnosis based on various investigations and if there is any ambiguity, it can be raised and discussed in expert meetings and there is no need to create space; Unless there is a special intention and interest that is a place for reflection.

It seems that the Competition Council still insists on the same way as before to deal with the car market. Now, the Parliament and the Government Penalty Organization have joined the supporters of this market management method and have formed a new front against the capital market and the supporters of the car supply outside the mandated control of the Competition Council!

Read more reports on the Auto News page.