Will the plan of the MPs be untied? / Issuing a car import license by applying hard labor!

EconomyOnline– جواد هاشمی; However, until the full establishment of the economic team of the 13th government and the determination of the macro policies of the Ministry of Silence regarding the automotive industry, it is not possible to speak definitively about the future of this important industry in the Iranian economy. Decision-makers have left no doubt that the need to take quick and decisive decisions to get the country’s auto industry out of the situation it has faced in recent years.

Iran’s auto industry, which in the early years of Rouhani’s government had hoped for Borjam and the return of foreign partners and the design of new brands and cars at home, said goodbye to the 12th government, but not many of Borjami’s plans for the auto industry went anywhere. Many of the existing crises were resolved.

Surveys show that car prices have risen several hundred percent in the past eight years, while concerns about the low quality of domestic cars still remain. The Competition Council’s insistence on maintaining a mandatory pricing policy has created a significant gap between official prices and market rates, and policies such as car lotteries have not been able to break the deadlock. In addition, estimates indicate the accumulated losses of tens of thousands of billions of tomans of domestic automakers, and their debt to parts manufacturers has reached an unprecedented figure. In such a context, due to foreign exchange restrictions affected by US sanctions, the import of cars to Iran has been banned since 1997, and many decision-makers attribute the change in this policy to a change in sanctions and the government’s reopening of access to foreign exchange resources. .

In such circumstances, the MPs announced a few months ago that they are pursuing a plan called organizing the car industry, which, if finalized, could find a solution to some of the problems of this industry today. Although this plan was practically forgotten in 1999 due to the disagreement of the Ministry of Silence of the Twelfth Government, the deputies took a new step in this direction by finalizing it, which of course needs the approval of the Guardian Council to become law.

The deputies of the 11th parliament this morning (Wednesday) in a session of the parliament amended and approved a new part of their plan to correct the objections announced by the Guardian Council, the main focus of which will be on car imports. Although the finalization of this plan does not mean the liberalization of imports, but if finalized, it will open new windows for the import of this product to the country.

The amendment to Article 4 of the plan of the MPs states: Any natural or legal person can import all electric motors for the export of cars or car parts or other goods or services related to various propulsion industries or through imports without transferring currency. Two-force (hybrid) or import of gasoline or gas-powered vehicle with energy label b (b) and above or with a safety index of three stars or higher based on valid standard certificates, equivalent to its export value.

Note 1- The import of the subject of this article should not create any new foreign exchange obligation for the country.

Note 2- The ceiling of the number of authorized imported cars is determined once every six months by the Competition Council based on the amount of supply shortage in relation to the effective demand for passenger cars during the past year.

Note 3- Restricting having a dealership or providing after-sales services is prohibited only from foreign automakers. Other relevant regulations are determined by the Ministry of Industry, Mines and Trade.

Note 4- Re-importation of exported items subject to this article is prohibited and is considered as smuggled goods.

In this way, the parliament has finalized its initial plan with a few changes. It is also a condition for importing cars or exporting products related to this field, or it should not create a new foreign exchange commitment for the government. Also, the emphasis on electric or hybrid cars is a matter of debate, how much of this plan will be allocated to them, and basically how much infrastructure does Iran have to use these cars?

Farbod Zaveh – Automotive Industry Expert – in an interview with Online Economy, says that the current plan of the parliament to solve the current problems of the automotive industry can not be hoped for, and if the necessary arrangements are not made for the operation of electric vehicles, this issue can Lead a new challenge for the automotive industry.

He explained that the liberalization of imports works in a situation where there are no restrictions and complex conditions: “Unfortunately, in our country, some industry activists have left in such a way that any import can lead to the collapse of domestic production and the destruction of industry.” However, a principled import is only the enemy of corrupt or rent-seeking activities and can also help improve the quality of domestic products by increasing the competitive environment and eliminating monopolies.

“We can’t talk about imports, but we can make it difficult by imposing broad restrictions,” he said. If the benefits of imports are to be used, the conditions must be created to break the monopoly and create competition. An important part of the increase in car prices in the Iranian market is not due to the shortage of goods, and monetary and macro policies have caused inflation, which has also shown itself in the automotive industry. With regard to imported cars, if the price is to decrease, the number of imports should increase, which is not seen in the current plan of the parliament to pursue such a policy.

Zaveh pointed out: In the parliamentary plan, the import council has once again been responsible for setting the import ceiling, and these restrictions make it difficult to show the positive results of such a plan. In addition, the import of electric vehicles can lead to new problems if we do not provide infrastructure such as charging stations, so it is still necessary to have a holistic and comprehensive view of the automotive industry, and so on. If no approach is followed, taking advantage of such plans is more of an unrealistic expectation.