Khodrocar – Right from beginning of this year when the huge wave of vehicle price increase started to happen, there were a lot of names mentioned by automobile industry experts as the one in charge of chaos of the market. This article goes through various causes of the huge mess in the automobile market of Iran.
There are five most important factors presented as the main causes of the automobile market to lose temper:
- Exchange Rate Fluctuation
- Brokers Influence On the Market
- Lowering of Vehicle Production
- Auto Part Import and customs Release Limitations
- Sudden Withdraw of USA from JCPOA
The most important question is, what is the most important reason for the unrest of automobile industry and how government can prevent the prices to go any further up?
"Every market Is consist of any two parties, the supply and demand sides of the story. Both sides have been facing various difficulties throughout the recent past months and that is a critical situation. It becomes impossible to control the outcome when both parties are in deep trouble.” Said Hassan Karimi Sanjari, and automobile industry expert in an interview with Khodrocar Journalist.
"The fluctuation of exchange rate which is derived from the US sanctions against Iran, is considered as the most important and most effective cause that actually reduces the foreign exchange earnings of the country. There are also some other various reasons along that worsen the circumstances. The notable point to mention is the government who has sat back and does nothing to better the situation.” Added Sanjari.
The expert mentioned liberated pricing system as the solution and went on: "Liberating the pricing system can reduce the hot demand and increase the motivation for supply but it is impossible. Putting the liquidity into production is easier through liberation of pricing system. When manufacturers stop playing role as beneficial businesses, then putting liquidity into production can also be beneficial.”
Khodrocar – Apparently a collection of factors have affected the vehicle market of the country through the past six months and it is impossible to point finger at only one of them.
Khodrocar Journalist: Negar Mirkarimi
Khodrocar Translator: Mostafa Anisi
