News ID : 3278
Publish Date : 14 September 2018 - 08:00
Increment in price of almost everything caused the final price of domestic car makers’ products to increase. The car makers increased the prices once back on July but they request another increment up to 17 percent. Is that even possible?
Khodrocar – Lots of factors are considered each year as the affective factors of price increments in the car market. Final vehicle prices are increased each year based on these very factors but this years, other unexpected events such as the US sanctions caused a 5 to 45 million Tomans final price different between the official MSRP and the price in the market for some vehicles.

The statistics shows that carmakers are producing vehicles with a damage of 2 million Tomans as they buy needed raw materials by the price of the day while they have to sell their cars with former price tags. Not to mention that car makers now have to take increment in workers’ wages, insurance and so on into account.

The speaker of industries and mines affaires of cabinet said before that the increment in price of the vehicles must be revised carefully. People must not be forced to pay the wages of over 11 thousand excess personnel of some car manufacturers. 

Question is what should car manufacturers do now? Keep on producing vehicles in lower production figures and with damages or increase the price tags and face the great drop in numbers of customers and forcefully storage their vehicles?

"When the price of some raw materials like the aluminum and steel is increased about 80 percent, how can the car makers not to apply these increments?” Said Ahmad Nematbakhsh, chairman of Iran Vehicle Manufacturers association.

"The final prices of vehicles are increased only by 12 percent in the past 3 years and that is while the raw materials experienced an 80 percent increment in prices. It is the raw material manufacturers that must have to answer the question why they increased the prices and not the car manufacturesr.” Added Nematbakhs.

Khodrocar – it was almost 3 months ago that car makers received a warrant of price increments up to 5.6 up to 7.1 percent, yet they request another increment of 17 percent. Apparently manufacturing vehicles these days is nothing but damages for the manufacturers.

Khodrocar Journalist: Negar Mirkarimi
Khodrocar Translator: Mostafa Anisi

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