News ID : 3815
Publish Date : 08 November 2019 - 09:00
The price increment in auto market and as the Pride backed in 500 million IRRs era has made many questions because exchange rate was decreasing in the past days and even some parts of demands were controlled with the Presales.
Khodrocar - The return of car prices over the past few months has dampened hopes of lower prices and a return to market equilibrium, while demand for purchases has also declined as prices have risen again, leading to deeper market downturns.

Car market participants believe that insufficient supply by automakers has fueled the rise in prices and that the current trend will not improve except as production and supply increase.

An examination of the prices in the car market shows that the most recent increase in prices is seen in cars below 100 million tomans, which account for much of the market demand.

"In the past few weeks, the number of invitations sent by some cars, such as the Peugeot 206 and some documents, has fallen sharply, leading to comments about the inability of automakers to manufacture these cars and add to their cost.” Saeed Motameni, manager of autoshow owners association told khodrocar reporter.

As he added, while the supply and demands are not equal in the market we can’t see the balance in the prices so automakers have to produce more.

The announcement comes as the latest figures released by the Ministry of Automobile Manufacturing declined in the first six months of this year, which could be attributed to the rise in car prices.

But at the same time, some experts in the automotive industry believe that with the announcement of the Pride and Peugeot 405 production halt, demand for these cars has increased, as there are no cars in the price range and no replacement for the cars. Therefore, we see that the prices of these cars have risen dramatically in the market, so that it is necessary for the authorities to make the necessary forecasts before announcing such news.

Meanwhile, a new round of automobile pre-sales has begun, which is expected to calm the market to a great extent, although the market has not responded in a few weeks, but Nematollah Kashani Nasab, an inspector of the Union of Automotive Exhibitors and Dealers. In an interview with Automotive Reporter, he believes that these pre-sales will continue to bring calm to the market if part of the market demands are not met through high sales.

In his opinion, there is no justification at present for the automakers to reduce the market supply, so that the existing demand can be controlled by increasing production. The current trend shows that the car market is so shaky that decisions such as stopping production of some cars will increase their demand and make the market unsettled, according to Automotive. These conditions indicate the need to anticipate serious solutions before announcing any decisions.

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