News ID : 3911
Publish Date : 11 February 2020 - 09:00
20 thousand billion toman loses of auto industry in the past year and recording this lose in the financial statements of auto makers happened while most of this lose was because of ordered pricing.
Khodrocar – From 1 year ago and after the pricing became a duty for consumer support organization the lack of ability in controlling the market made a huge gap between the price of factory and market and in some cars it gets more than 50 million toman.
However, the successful experience of margin-based pricing in recent years has led automakers to rely on those experiences to demand the release of car prices and market margins. Now, more than a year after the Competition Council's departure from car pricing, it is set to regulate car prices. Although the Association of Automakers has put forward proposals to minimize damage to automakers, it has not yet been approved.

"If the automobile association's proposal to raise the price of cars is to be stepped up and priced at the margins of the market, the presence of a competition council in the pricing of the automobile industry is unnecessary, and if so, only the competition council should do The implication is that, by putting more pressure on companies, we need to free up car imports to get rid of lethal bureaucratic trends.” Farbod Zaveh, expert of auto industry told khodrocar reporter.

"Undoubtedly pricing based on market margins is the right way to not only reduce the losses of car makers but also to reduce the inflation of car makers in the macroeconomic economy of the country, and this will greatly benefit the country.” He said.

"The strange thing is that despite the numerous economists in the country as well as the Competition Council, there is no awareness that the country is experiencing 40 to 50 percent inflation and in these circumstances prices should see at least a 10 percent increase because if inflation is high, It is not possible to keep prices stable.” He said.

"If prices have not remained constant since January last year and pricing was done on the margins of the market, we might not have witnessed the upheaval, the pricing situation in the automotive industry is seeing the country at 50% inflation and if prices Determined by market margins, it did not create liquidity.” He added.

"Due to the wrong pricing process, the car maker has failed to get money from the public, thus providing cash from banking facilities, but due to the inability to pay the facilities, banks are also withdrawing excess money from the central bank. These conditions lead to an increase in monetary base and inflation, while this is not the case at least in marginal pricing.” He mentioned.

We now have to see what mechanism the Competition Council will envisage to monitor and control the turbulent car market that will at the same time benefit the car makers.
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