KhodroCar – right now, the national competition council is responsible for pricing under 450 million IRRs vehicles and other cars will be priced by automakers. Producers could decide about the price according to the market’s request. Automakers could control the price increment and the market by increasing production rate and quality, but they don’t have the eager due to the lack of competitiveness.
Under 450 million IRRs vehicles are the main part of Iran’s market and local automakers don’t have any rival in this segment and now after new instructions and by increasing tariffs, they would be alone and without any competitor in other segments. However, this could lead the market to exclusivity, but the national competition council won’t enter to control it.
"The chairman of the national competition council believes that the local vehicle market is exclusive in Iran and increasing tariffs won’t effect on under 450 million IRRs vehicles and the real competition will be between imported vehicles.
"the market of under 450 million IRRs vehicles is exclusive. Importing these vehicles were not beneficial for importers. We believe that tariffs of these vehicles should decrease to break the exclusivity and make the market more competitive. However, it is not happening now and all vehicles are imported. Therefore, the real competition is between imported vehicles and doesn’t have effects on local vehicle’s exclusive market.” Said chairman of the national competition council.
"our automakers are producing under 450 million IRRs vehicles so they never compete with imported vehicles because no car is imported in this price range.” Said Reza Shiva.
"the price of this vehicle is same as imported ones. They should should pay high tariffs and compete with imported cars.” Said Shiva regards to the competitive market of assembled vehicles.
"Controlling the market of vehicles above 450 million IRRs is not among the national competition council responsibilities. This market is not exclusive and we cannot enter. Ministry of industry, mine and trade is responsible to control and observe this vehicle market.” He added.
"Importers should have a limit profit like 7 to 10 percent. According to the instruction of the ministry of industry, mine and trade, controlling organizations should be careful about importers profits.” Said Shiva.
KhodroCar Reporter: Sepideh Ghazinejad
KhodroCar Translator: Amin Zamani