The price increase of Saipa and Iran Khodro cars was determined
Mahmoud Dodangeh stated that the regulation of the passenger car market was approved by the Council last year, according to the report of Ekhtaz Online, quoted by ISNA, and stated that this directive was reviewed during the previous weeks in the Automobile Working Group of the Competition Council with the presence of all relevant institutions. In this regard, the Deputy Ministry of Transportation of the Ministry of Safety and the Organization for the Protection of Consumer and Producer Rights played a significant role, and various meetings were held with car manufacturers and associations of manufacturers, importers, and component manufacturers, and it is expected that the implementation of the resolution will be carried out with interaction and cooperation. Relevant devices should be done appropriately.
He continued: In one of the clauses of the directive, it was emphasized that to determine the factory price of domestic cars, the price of similar foreign cars should be considered. For this purpose, the Competition Council chose a research and specialized institution for this purpose. The task of the aforementioned institution was to select similar foreign cars in order to provide a possibility to compare and check the level of competitiveness of domestically produced cars. For this purpose, help was taken from the Faculty of Automotive Engineering.
The Vice Chairman of the Competition Council stated that the audited financial statements of the first six months of 1401 automobile manufacturers were provided to the support organization, and said: based on the financial statements, the necessary calculations were made and various meetings of the automobile working group were held with the aim of reviewing and implementing the guidelines and finally summarizing about The price was done and approved by the Competition Council. Of course, this resolution is only related to domestically produced cars, which are mainly products of Iran Khodro and Saipa, and investigations are still ongoing regarding assembled cars.
Dodangeh added: It should be noted that during the past years, the variables influencing the cost of production, including the exchange rate, the wage rate, and the price of production inputs, have increased, and this increase in costs is evident in the financial statements of car manufacturers that have been approved by official auditors. This is while the factory price of cars has not increased in proportion to these costs; Therefore, an increase in the factory price of cars will calm the passenger car market, because it will lead to an increase in production.
He stated that car manufacturers have pledged to increase production in line with the increase in the factory price of their products, and stated that the Competition Council and the Ministry of Security will continuously monitor this increase in production. In addition, within the framework of the Competition Council’s directives, import facilitation is necessary for the competitiveness of the automobile industry and will be continuously monitored, so we expect that with the implementation of the directives, on the one hand, the production of automobile manufacturers will increase, and on the other hand, not only the market price of automobiles will not increase. Rather, we should see the factory price and the market price getting closer, and eventually the car market will reach a balance, and on the other hand, there will be no incentive to speculate or look at investing in the car field.
Dodange emphasized: The average price increase of Saipa products will be 35% and Iran Khodro products will be slightly more than 35%. This matter was unanimously approved in the recent meeting of the Competition Council and the process of notification to the Ministry of Safety and Automobile Manufacturers is underway. Obviously, after the notification of the resolution, the process of implementing the resolution must be started.
He emphasized: With the implementation of the Competition Council’s decision regarding the regulation of the passenger car market, it is expected that the final consumers will be able to access the desired products with greater ease and at a more suitable price. On the other hand, producers should be more motivated to develop production and improve quality, and finally, shareholders should have more motivation to invest in this industry.