News ID : 3931
Publish Date : 01 March 2020 - 09:02
While setting a price ceiling to control supply and demand in auto market and stopping promissory notes usage has been recommended, experts said that there should be a formula to see all pros and cons of this method.
Khodrocar - Proposed price-fixing in the auto market while some market participants see it as the only way to stabilize and reduce false prices in the auto market, they believe that regulatory pricing can largely control the market. This is because the lack of price base in the car has caused every site to announce false car prices in the market, which will eventually create a negative psychological atmosphere and price turmoil and profiteering for the market.

Manager of Tehran car sellers’ union, Saeed Motameni believe that basket cars, now referred to as editors, have already been delivered, which have been among the factors driving the change in the price flow in the car market because of the lack of price ceilings for their owners is making them to set price as they want.

He continued and said that the stimulation of false demand in the automobile market with the aim of preserving capital value has been part of the factors affecting the price conditions in the automobile market.

"While this can have a controlling effect on the market and prices, it is important to note that a formula must be defined for the market. Determining a formula appropriate to the market conditions and profits of the carmaker and seller can bring the market closer to a price equilibrium.” Shahram Azadi, expert of auto industry told khodrocar reporter.

"This can lead to speculators leaving the car market, but it is imperative that the pricing mechanism does not act as grammatical pricing, but rather as the sole controller of supply and demand.” He continued.

"Grammatical pricing in recent years has been a major disadvantage for automakers, and repeating this trend in other ways is not rational given the negative effects of this move, so it is necessary to first consider all aspects and benefits of the buyer. And the seller must determine the formula for the car's price ceiling.” He said.

Experts believe that if supply was sufficient and the price ceiling for cars in the market was set, we would not see a hectic rise in prices. According to them, if there is a price ceiling, the car owner will not become a price-fixer, a matter that the Consumer Protection Organization and its trusted manufacturers.

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