Why is car liberalization important for the stock market?

According to the online economy; Mehdi Souri, an expert on the capital market in the world of economics, wrote that, as has been warned many times over the years, now it seems that with the capital market gaining strength and the general demand of shareholders (in order to increase the transparency of business, production and the economy in general), policymakers They have come to the conclusion that the issue of grammatical pricing has made production in the country uneconomical, demand has outstripped supply, and queuing for most goods, the black market, multiple cases of rent, corruption, and the like have taken place. Let’s direct the whole economy in a direction where brokerage in this economy is more economical than production.

For example, a study of the automotive industry suggests that there is a monopoly of manufacturers in this group. On the other hand, at times when there was a demand for this industry in the market, a process was implemented by orderly pricing in which the broker’s profit from the car was equal to the total price of the car; This means that if the total price of the car was a profit for the manufacturer, which it is not, then the dealer would make as much profit as the manufacturer. This reduces the attractiveness of investing in many economic sectors of the country. Manufacturers are unable to make a profit due to the lack of pricing for their products; Because money is moving in a direction that is economically viable. As a rule, production was not economically viable in this regard, and the declining economic efficiency of production reduced demand, and the same behavior that was used to combat overselling actually led to more expensive products. Now, we welcome the elimination of grammatical pricing in the automotive industry, which was one of the most significant commodities that has always faced the problem of grammatical pricing, and we hope that this will spread to other sectors. For years, no new sugar companies have been added in the country; The reason is also related to the issue of grammatical pricing. As a rule, producing sugar in another country and exporting it to Iran is more economical than producing it domestically. If the new law extends to other industries, we can see interesting developments in production. If the brokerage profit is eliminated (for example, in the automotive industry, the factory sells the product at a price of 127 million Tomans, the same car is priced at 270 million Tomans in the market. For the difference in price, the broker’s profit is also considered). From the broker’s profit to the producer and the other part to the consumer, production will certainly flourish, prices will fall as a result, and finally the level of public welfare will increase. When in an industry, regulatory pricing is removed and the producer is then allowed to sell his product at a price set by the market, the monopoly should normally be removed from the market. Not overnight, but as a pre-arranged program, we need to steer the producers to use the extra profit they make to improve quality. We must create a competitive environment by breaking the monopoly and opening the markets to the import of quality goods, so that domestic producers can become a real economic enterprise from the naked state and their survival depends on the balance between price and quality; This will benefit the industry and the consumer. If the old trend (pricing by the Competition Council) had continued, the biggest carmakers would have lost every year. While in many cars people are forced to buy a car for five times the world price, their income is not one-eleventh of global income. This is certainly not the valley of the people of the country, nor the valley of industry. Apart from these, it has been a while since we have seen an increase in demand for shares in the automaker group. It is no secret that liberalizing carmakers’ prices can lead to profitability and loss-making. Of course, they can also experience situations that are very different from those of the past. If we want this demand to continue in some way when it is accompanied by a decline in news excitement, and instead of using fluctuations and positive news to lead to sustainable investment, we must be able to analyze the accounts and financial books of automakers. Due to the quasi-governmental framework and management system we had in the automotive industry, we unfortunately do not have clear reports from automakers from the point of view of fundamental analysts. According to published reports, the correct cost price of automakers can not be calculated. It is necessary for this demand to move in the direction of making the automakers’ environment financially transparent so that the people of the market can continue to analyze such shares. In such circumstances, a kind of public oversight of the performance of the automotive industry is created.

Prior to the change in the orderly pricing method, automakers acknowledged that they did not have the price, so they were losing money. If prices are released in the automotive industry and automakers can make a profit, it will not be acceptable at all if these companies are unprofitable or economically unprofitable to produce; Because a price excuse has been taken from them according to the new law.

We hope that in the next step, with the pressure from the shareholders of these companies and the support provided by the policy makers, we will move towards increasing the transparency of the financial statements of the cars.

In the last two or three months, the main analysis in the market has been around the fact that companies are in a good position in terms of production and sales and they do not notice any problems. But there was a general fear among shareholders and the general public about investing in the stock market that was hindering the growth of prices in the capital market, a fear of the unpredictability of possible actions that might be taken by the government on the stock market.

During the election, there was a lot of supportive talk about the stock market, the elimination of mandatory pricing, the removal of 4,200 tomans, the lack of government intervention and financing from the capital market and the free economy, but after the government took office, officials behaved in a way that contradicted the initial talk. Was. In particular, with regard to the issuance of bonds, despite the fact that the government had declared that the capital market was not the place to finance, that’s not. With the general determination at the level of policymakers to support the capital market and the measures taken to eliminate regulatory pricing, the market has regained hope. The expiration date of this hope will not be very long if it is not accompanied by practical measures. People still do not have full confidence in the capital market; This is because it is believed that due to the government budget deficit, any market in which people enter their liquidity will be used for financing.

If measures such as the elimination of mandatory pricing continue in all industries, it can be hoped that the value of companies, along with the return of hope to the capital market, can create better conditions for the shareholder community.