The base price of imported cars was announced in the commodity exchange – Tejaratnews
According to Tejarat News, read the details of the method of determining the base price of imported cars in the commodity exchange.
The Director General of the Automotive Industry Office of the Ministry of Security said: The price is determined by taking into account the foreign exchange price of the car, the commercial profit on account, customs duties, transportation costs and other acceptable costs of the importer and a fair profit.
Regarding the method of determining the commercial profit of imported cars and the base price of these cars in the commodity exchange, Abdullah Tawakuli Lahijani said: the minutes of the additional meeting of the economic working group on car imports are related to the determination of the profit on the commercial account to determine the base price of imported cars in the commodity exchange; The important thing is that the process of selling imported cars in the stock market is that first, the base price of the stock market is determined based on the commercial profit of Ali al-Hasab (according to the table below), which is done based on the standards of the consumer and producer support organization.
Details of how to determine the base price of imported cars in the stock market
He stated: Therefore, the base price of the stock market includes the foreign exchange price of the car, commercial profit on account, customs duties, shipping costs and other acceptable costs of the importer and a fair profit has been determined.
Tawakli Lahijani added: After that, the car will be sold based on the base price determined in the commodity exchange, and then the difference between the sale price of the car in the stock market and the determined base price will be considered as the definite profit of the business. Therefore, the accrued profit determined in this table cannot be compared with the previous conditions, because this table is the only determinant of the commercial profit in order to determine the base price of the stock market. However, the definite commercial profit is obtained after selling the car in the stock market and receiving the difference between the selling price and the determined base price.
Making the domestic car market more competitive through the supply of cars with a lower base price in the stock market
The Director General of Automobile Industries of the Ministry of Security emphasized that the dominant approach in the supply of imported cars is to make the domestic car market more competitive by supplying cars with a lower base price in the commodity exchange, and said: for this reason, the profit on the commercial account has been reduced compared to imported cars with lower prices. less base to be offered in the commodity exchange.
He clarified: These tariffs are set in a smart way so that domestic cars in the literal sense, that is, cars with a high level of domestication, still have a competitive advantage both from the perspective of the car and the part.
Tawakli Lahijani stated: For example, a domestic car of 1500 cc with an internalization rate of over 40% actually pays a tariff of 10%, while the import tariff of an imported car is set at 25%, apart from other duties in Imported cars are nearly 15% more than domestically produced cars. Therefore, while moving towards making the country’s car market more competitive, it has been tried to take into account the concerns related to supporting domestic production.
Competitiveness of domestic cars through the development of products based on indigenous infrastructures
He stated: Although in the transformative program of the Ministry of Industry, Mining and Trade, it is very important to make domestic products competitive through the development of products based on local infrastructures and of course with a high level of internal manufacturing, but it should be noted that in the last few years, cars with a high level of internalization At the bottom, even less than 20% has been offered in the name of domestic production in the country, which not only did not create a suitable added value either from the point of view of employment or from the point of view of competitiveness, but with the production on a small scale and at a high price, they only caused the rights of consumers to be violated. The car will be damaged.
He stated: Therefore, consumers are expected to maintain the advantage of domestic production through access to a competitive product with domestic quality, and tariff protections are not supposed to prevent competition in the country’s car market.
The purpose of imports is to make the country’s car market more competitive
The Director General of Automobile Industries of the Ministry of Security said: Another prevailing approach in setting these tariffs is that cars with lower engine volume and lower fuel consumption reach customers at a lower price. This is an important point that has been paid attention to in this period of imports, while in the past years, instead of competition, there was practically no competition between domestic car manufacturers and importers, that is, imports did not make the country’s car market more competitive. Importers mainly used to import very expensive and luxury products, and the price difference caused by the high tariff caused us not to see competition in this market through imports, but now the purpose of imports is to make the country’s car market more competitive in order to satisfy customers and of course Improving the quality of domestic products.
Stating that three main axes are included in the adjustment of the profit table for commercial vehicles, he said: The first axis is to pay attention to the competitiveness of the automobile market through the reduction of the base price of the supply of imported cars, especially in cars with a lower price.
The Director General of Automobile Industries of the Ministry of Security stated: The second axis is to pay attention to environmental considerations through the reduction of tariffs for cars with a smaller engine volume, and the third axis is to pay attention to the support of domestically produced products with a high depth of internal manufacturing, which will also lead to the development of domestic parts manufacturers. Therefore, taking this into account, in this table, only the commercial profit is determined, and the final commercial profit will be determined after selling the car in the stock market.
He stated: We believe that the country’s automobile industry has many potentials, including numerous knowledge-based companies, a lot of engineering force, as well as cheap labor and cheap energy, so that it can compete in this competition by relying on local power and through the development of local infrastructures. With a high depth of internalization and of course with quality, it will come out proud and penetrate the export markets of the region and other target markets according to the transformation plan of the Ministry of Security.