Ministry of Security: We are following the policy of increasing production and stopping the expensive sale of assembled cars

According to the Fars news agency, citing the public relations of the Ministry of Security, some people have criticized the support of the Ministry of Security to the Competition Council’s decision on the pricing of assembled cars and claimed that this will lead to an orderly reduction in the price of assembled cars.

In response, it should be stated that the initial policy of the Ministry of Security in the 13th government regarding private sector car manufacturers was to save these companies from closure and production crisis. In the first step of the program, the Ministry of Security of the 13th government focused on stabilizing the production flow so that by increasing the scale of production, in addition to responding to the accumulated needs of the market during the previous years, the suspended production capacities could be revived.

As a result of the policies of the ministry of silence in solving the problems of supply of parts and financing and currency, in 1401, the production of non-government automobile manufacturers doubled more than in 1400 and recorded an increase of 103 percent. Therefore, such a claim that the ministry of silence of the 13th government is indifferent to private car manufacturers is untrue, and if the same policies of the previous government continued, it would not be clear whether private car manufacturing would be active in the country or not so that the media can take a positive or negative position regarding the pricing of their products.

This year, the Ministry of Security also emphasizes that by relying on the synergy of domestic resources and increasing the depth of domestic manufacturing, it will reduce the exchange rate of assembled cars, so as to reduce the cost of these products.

Meanwhile, an important complication of the country’s car industry, which was caused by wrong signals in policy and pricing in the past government, was the removal of economic cars from the production line of car manufacturers and switching to the assembly of foreign cars with low domestication depth and high profit margins.

However, all international studies show that the power of the country’s car industry to take advantage of the market lies in the development and sale of economic cars with high internalization.

In terms of pricing, the policy of the Ministry of Security is to make the prices of car manufacturers competitive in such a way that the previous harms of pricing are removed and a win-win relationship is established between the car manufacturer and the car consumer.

The lack of high internalization in many private sector car manufacturers’ products is an important complication that is rooted both in the rules and in the implementation of relevant guidelines. The same problem exists in the formation of component makers who are practically assemblers and the formalization of internalization at the level of component manufacturers, so efforts have been made to improve the internalization situation by revising the internalization instructions and carefully implementing the ruling rules (especially Chapter 98). Although this way of implementation had a challenging beginning, in 1402 we will undoubtedly witness an increase in the level of domestication of private sector car manufacturers and the resulting decrease in foreign exchange.

While supporting the automobile production chain, the Ministry of Safety also fights against any abuse and overselling, and last year, the violation case of one of the same assemblers was referred to Tazirat with the follow-up of the Consumers and Producers Support Organization, which led to a fine of 14 thousand billion tomans for overselling. And the fight against high prices will never stop with the media creations of critics of the government.

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