Exactly when the imports started breathing and the foreign automakers were up to start investing in Iran, the sudden decision of government ruined everything.
Khodrocar – After JCPOA and right when the major automakers were convinced to start investigate in Iran, everything changed in a blink of an eye.
Since last year, Iran’s automotive industry specially importers, experienced many tensions like the shutdown of SABTARESH and the import tariffs. However, some importers were trying to keep moving by all the vehicles they got until a bigger problem showed it self and that was the exchange rate increment. Exchange rate increment is a major problem for the companies for importing their cars to Iran.
What are the consequences of these issues?
Kourosh Morshed Soluk, vice president of Vehicle Importers Association of Iran told Khodrocar regarding the issue: "During the recent months the vehicle importers faced a big financial loss because of the tensions. Some because of shutdown of SABTARESH, some because the Court of Justice’s decision and the others because of exchange rate fluctuations.”
He continues: "In general, any reason that destroys the market stability and cause concern in the minds of the consumer, first damages the importers then the costumers.”
Morshed Soluk says: During the closure of SABTARESH, many companies were not able to keep up with their commitment about consumers. This has made a major financial loss for the importers and destroyed the optimism of consumers about the brand, like they are not able to trust the brand anymore.”
Vice president of Vehicle Importers Association mentions the other problems of this industry and says: "The sentence of Iran’s Court of Justice (Divane – e Edalat) increased the anxiety of importers. They are also very pessimist about the increments and reductions of tariffs.”
He says that after the sentence of Court of Justice, the exchange rate increments shocked the importers in a way that if the exchange rates decrease right now, it makes problems for them. Currently, market turbulence such as exchange rate fluctuations, the opening and closing of SABTARESH, the court of justice ruling, and even recent decisions of the Donald Trump, have increased the psychological burden and inflammation of society.
Khodrocar – It’s less than a year that market tensions have made major problems for vehicle importers and now we should wait and see what will the government do in order to fix these problems?
Khodrocar Reporter: Negar MirKarimi
Khodrocar Translator: Maziyar Jafarieh
Since last year, Iran’s automotive industry specially importers, experienced many tensions like the shutdown of SABTARESH and the import tariffs. However, some importers were trying to keep moving by all the vehicles they got until a bigger problem showed it self and that was the exchange rate increment. Exchange rate increment is a major problem for the companies for importing their cars to Iran.
What are the consequences of these issues?
Kourosh Morshed Soluk, vice president of Vehicle Importers Association of Iran told Khodrocar regarding the issue: "During the recent months the vehicle importers faced a big financial loss because of the tensions. Some because of shutdown of SABTARESH, some because the Court of Justice’s decision and the others because of exchange rate fluctuations.”
He continues: "In general, any reason that destroys the market stability and cause concern in the minds of the consumer, first damages the importers then the costumers.”
Morshed Soluk says: During the closure of SABTARESH, many companies were not able to keep up with their commitment about consumers. This has made a major financial loss for the importers and destroyed the optimism of consumers about the brand, like they are not able to trust the brand anymore.”
Vice president of Vehicle Importers Association mentions the other problems of this industry and says: "The sentence of Iran’s Court of Justice (Divane – e Edalat) increased the anxiety of importers. They are also very pessimist about the increments and reductions of tariffs.”
He says that after the sentence of Court of Justice, the exchange rate increments shocked the importers in a way that if the exchange rates decrease right now, it makes problems for them. Currently, market turbulence such as exchange rate fluctuations, the opening and closing of SABTARESH, the court of justice ruling, and even recent decisions of the Donald Trump, have increased the psychological burden and inflammation of society.
Khodrocar – It’s less than a year that market tensions have made major problems for vehicle importers and now we should wait and see what will the government do in order to fix these problems?
Khodrocar Reporter: Negar MirKarimi
Khodrocar Translator: Maziyar Jafarieh
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