News ID : 3922
Publish Date : 21 February 2020 - 09:00
However in the past week and alongside with the announcement of taxed of car trade made the market to calm but dollar price increase brought back the tension to the market again.
Khodrocar - Although taxation in the last month of the year, when demand for car purchases increased substantially, was able to bring prices down, but due to high demand on the one hand and conversion of the car into a capital commodity on the other, We are seeing a return of the upward trend in the car market. Some equity holders are now on the market to convert their liquidity into commodities, such as cars, and this is also fueling price growth, as these individuals seek to profit and retain value in the automobile market. Presently, with the hope of more expensive cars and more profits, they refuse to sell their cars, leading to a lack of market supply.

Also political reasons had negative effects on dollar price and made it to enter 14000 toman channel which had affect the automobile market. 

"Monopoly in any market is driving price increases, and as demand rises and car buying ranks, we will see more happen.” Saeed Motameni, manager of car sellers union told khodrocar reporter. 

"Currently, the market price and factory price for cars under 100 million tomans has reached 23 to 45 million tomans, while this difference has reached 2 to 4 million tomans in the interval of time and the car registrants are not profitable. , Withdrew their registration.” He added. 

"The market has been in recession for the past few months, and rising prices have led to consumer dissatisfaction and, on the other hand, fueled the market downturn as prices have risen to the point where there is no purchasing power.” He said. 

"The unprecedented rise in prices has left many customers frustrated with the purchase of a car, given that, along with rising prices, what could lead to a price drop in the near future is a lack of buyers in the market.” He added. 

Market participants and experts believe that the low supply of automakers as the market entered the last month of the year could be the most important reason for rising prices but at the same time should not ignore the impact of the exchange rate rise, but what is certain is that the market is currently not viable. It is not foreseeable and it is unclear how long this process will continue.
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