Ordering pricing was removed from the automotive industry
According to Eqtesadonline, quoting Tasnim, with the follow-up of shareholders and the stock exchange organization, the first step was taken to eliminate orderly pricing in the automotive industry and disruptive market interventions, and according to a resolution of 28 October Pursuits to reform government interventions in other industries continue vigorously, and these measures will ensure the continued profitability of industries and sustainable market growth for many years to come.
It is worth mentioning that in September of this year, the then head of the Exchange Organization wrote a letter to the Minister of Economy requesting a re-examination of the issue of orderly pricing of the automotive industry and parts manufacturing in the Competition Council and excluding these products from pricing.
The letter stated: “Considering the position of the automotive industry and parts manufacturing as the seventh largest capital market industry (in terms of market value) and the presence of countless investors and activists in the industry, the pricing policies implemented by the Competition Council in recent years, losses and The lack of profit has imposed a heavy burden on the shareholders in this industry, so that the requirement of the Market Regulation Headquarters and the Competition Council to automobile companies to regulate the car market, at times caused the car to be pre-sold at definite and irrational prices. It has caused losses to car companies.
According to the audited financial statements of Iran Khodro and Saipa companies in the fiscal year ending March 21, 2017, the net losses of the mentioned companies amounted to 155 thousand and 50 billion Rials and 57 thousand and 665 billion Rials and the accumulated losses of the mentioned companies amounted to 299 thousand and 386 respectively. 150 thousand and 69 billion rials. (The main reason for this is the imbalance between the increase in rates granted to automotive companies and the increase in the price of production inputs. The company is 163%.)
The then head of the Exchange and Securities Organization also said in the letter: “It seems that the pricing of cars in the Competition Council due to inefficiency in inflationary conditions has major drawbacks, which not only regulates the car market and final consumer satisfaction, but also transfers benefits.” From car companies to intermediaries, there has been a lack of liquidity in car companies and parts companies, and the continuation of the above trend will lead to a reduction in production and ultimately the cessation of activities of car companies and parts companies.
In this regard, due to the non-inclusion of pricing of production inputs of the automotive industry and parts manufacturing by the Competition Council and the delay in granting permission to increase rates in inflationary conditions, it is suggested that the issue of car pricing be re-examined in the Competition Council. The steel and petrochemical industries should be excluded from pricing by the Competition Council in order to prevent future losses of automobile companies in the face of inflation. Be responsible.
.