Automakers profits in banks/ when the bank interest will be the index of pricing

Khodrocar – car price reform is now on the top list of ministry of industry while these days everything is on a hallow. According to the manager of industry affairs in the ministry of industry, by the losses of automakers the government is looking to correct the prices. 

Meanwhile, Mehdi Sadeghi Niaraki had recently emphasized that this ministry is against the release and liberalization of prices, and the price reform will undoubtedly be due to the increase in production institutions so that the operating losses of car manufacturers do not increase further.

The emphasis is on reforming car prices, while pricing in the industry is now done without regard to increasing production costs, and this stems from the fact that the price of raw materials, which is 70% of the price of a car, is based on Global prices were set while most of these materials were produced domestically and priced on commodity exchanges.

On the other hand, the revision of car prices based on the quarterly inflation rate is considered as one of the achievements of the Market Regulation Headquarters while we are in the last month of summer.

"Determining the price at the margin of the market and determining the reasonable profit margin for the price of the car, which should naturally be higher than the interest rate of the bank deposit, is one of the methods of car pricing.” Saeed Madani, former manager of SAIPA automotive group told khodrocar reporter. 

In any case, entering the stage of realizing the price of the car should be done by the protection organization, because the Competition Council does not have an executive solution for this issue and only determines the price based on inflation, which in the end is undoubtedly a reasonable number. It is not available because the figures in Iran are announced with consideration in some cases. Therefore, the entry of the Ministry of Industry into the field of car pricing should be done by setting a profit margin of 5 to 10 percent higher than the interest on bank deposits, which may even be lower or higher than the real price, in which case the automaker must play with These prices determine the final price based on supply and demand.

"In previous years, the price set by the automaker was even higher than the market, which, by reducing the profit margin and even observing the inefficiency of continuing to produce some products, stopped the production of that product, which occurs with pricing in the market margin. In the absence of a buyer, the automaker can reduce the price and by increasing the purchase demand, the proceeds can be spent on increasing production and development programs.” He said. 

"The automaker must succeed in receiving a reasonable profit margin with the aim of taking development measures or stopping production lines whose production is not profitable. In any case, a profit margin must be considered for the automaker.” He said. 

"He stressed that since prices are rising and productivity is not rising enough to lead to a drop in prices, leasing companies should be set up with government support so that the container In the next two to three years, companies with guaranteed profits will be established and private companies will sell 60 to 70 percent of the cars produced under leasing terms, because prices are constantly increasing, and in these conditions, over time, they will see a decrease in power.” He said.