Minister Samat’s forecast of the car price in 1401

According to Trade News, do not promise to increase Car Prices will be done?

Quoted fromthe world of economy, According to the Minister of Silence, next year, due to the reduction of the cost price (to the fixed price of 99), pricing will be lower than general inflation and the price of cars will not increase.

Inflation determines the price of a car

Although the methods considered by the car policymaker in reducing its production costs are debatable, the main issue is that if the car price was determined according to general inflation during these years, carmakers would not face accumulated losses of 85,000 billion tomans and production losses of 12,000 billion tomans.

Also, the pricing formula of the Competition Council, car inflation was one of the determining factors in the price, but considering the lack of productivity and lack of quality improvement, in no period was the car price determined based on inflation, so carmakers faced production losses and accumulation.

Now, however, the car policymaker, in his strategic plan for 1404, has seriously addressed the issue of reducing the cost of cars to the fixed price of 1999.

Is the car getting cheaper?

According to the proposed plan, next year the cost price of the car will be reduced to a fixed price of 99% cumulatively by 15%. Also for 1402, a 20% reduction in the cost price of the car is targeted.

As stated in the document of the Ministry of Silence, three paths have been envisaged to achieve the goals set in order to reduce the cost of the car.

The first way is to stabilize the markets of major production inputs such as metals and petrochemicals. The second path is to improve the process of supplying parts and assemblies (internal and external) and the third path is to reform the cost structure of automotive companies.

While the policymaker has tried to have a suitable rail route from these three routes to achieve the mentioned goal in relation to reducing the cost price of the car, which seems to be very uneven considering the conditions of the country’s economy and the automobile chain.

Improve the parts supply process

One of the paths considered by the automotive policymaker is to discuss the process of improving the supply of auto parts and assemblies (both domestic and foreign). While the automotive policymaker is talking about improving the process of supplying parts, we see that the shadow of sanctions on the country’s automobile chain is still heavy, and this issue leads to an increase in the cost of supplying parts from foreign sources. In addition, car companies are currently unable to pay their debts to parts companies, which can make it difficult to improve the process of sourcing parts from internal sources.

Modify the automakers’ cost structure

The issue of reforming the cost structure of car companies is also one of the paths that has been considered in the strategic document of the car industry. The automotive policymaker seeks to pave the way for a reduction in the cost of automobiles by reforming the automakers’ cost structure. But reforming this structure is not so easy in a situation where car companies are trapped in government management. The full presence of the government and the insistence on costly policies such as mandatory pricing can be seen as an obstacle to reforming the structure of car companies.