While emphasizing the elimination of monopoly in the automotive industry and solutions aimed at eliminating it, it seems that the Minister of Industry considers the creation of new automobiles with the presence of governments and development organizations with the aim of creating a serious competitor as a factor to eliminate monopoly.
Khodrocar - Alireza Razm Hosseini, Minister of Industry, while coming to power, always emphasizes on removing the monopoly in the automotive industry, which he believes that creating a car industry with the participation of the private sector can be one of the ways to remove the monopoly, so that he The ministry has announced its readiness to establish a car factory in East Azerbaijan with the participation of a development organization such as the Industrial Development and Renovation Organization of Iran.
This situation is while the experts of the automotive industry always believe that the presence of the government in the automotive industry is one of the reasons for the monopoly of this industry and it is necessary to act as soon as possible to get the government out of this industry.
In this situation, the question arises, while this development organization now has leverage in car companies, what is the need to create a new government car industry?
"At present, this organization has a share of Iran Khodro and Saipa. Accordingly, it has powers, and although it has a minority stake in these companies, due to its nested companies, it has exercised power in car companies and even started Selects the board of directors of companies.” Saeed Madani, former CEO of SAIPA told khodrocar reporter.
"Given these conditions, before starting to create organizations, both with the presence of the private sector and the government, in the first step, the task of determining the presence of these organizations in the automotive industry should be determined and the existing bottlenecks should be eliminated. Production (more than 1.8 million vehicles per year) and then seek to create another automaker with the presence of IDRO.” He said.
"Currently, there is a car production site in Tabriz and even the private sector is active in the field of car production in this province, so it does not make sense to do so in a situation where car manufacturers under the control of the government are facing many problems by creating a new competitor. Threatened with the aim of breaking the monopoly.” He mentioned.
"There is currently no monopoly in the automotive industry, and if it were assumed that the current automakers were private and worked together to create a large cartel and set the final prices, the existence of a monopoly in the automotive industry can be acknowledged in These conditions were the duty of the Competition Council to enter into this issue and resolve it.” He said.
"The Competition Council is currently creating a monopoly because it sets the prices of the products of these two automakers in a way that makes a significant difference to the market. In this situation, inviting the private sector to produce cars does not work because new product pricing should be set by the government or the Competition Council, which the private sector is reluctant to do.” He added.
"In formulating the economic justification of the product, its profit and loss are considered. With this measure, the possibility of creating investment in domestic and foreign projects is eliminated. Even car importers will not be willing to operate, so the current monopoly is the government system.” He continued.
The current state of the automotive industry will not improve unless infrastructure, including stocks and prices, is improved. As long as we see problems in the transfer of financial resources and restrictions on exports, the automotive industry will not grow, or if it does, it will have a much slower pace than the automotive industry of other countries.
This situation is while the experts of the automotive industry always believe that the presence of the government in the automotive industry is one of the reasons for the monopoly of this industry and it is necessary to act as soon as possible to get the government out of this industry.
In this situation, the question arises, while this development organization now has leverage in car companies, what is the need to create a new government car industry?
"At present, this organization has a share of Iran Khodro and Saipa. Accordingly, it has powers, and although it has a minority stake in these companies, due to its nested companies, it has exercised power in car companies and even started Selects the board of directors of companies.” Saeed Madani, former CEO of SAIPA told khodrocar reporter.
"Given these conditions, before starting to create organizations, both with the presence of the private sector and the government, in the first step, the task of determining the presence of these organizations in the automotive industry should be determined and the existing bottlenecks should be eliminated. Production (more than 1.8 million vehicles per year) and then seek to create another automaker with the presence of IDRO.” He said.
"Currently, there is a car production site in Tabriz and even the private sector is active in the field of car production in this province, so it does not make sense to do so in a situation where car manufacturers under the control of the government are facing many problems by creating a new competitor. Threatened with the aim of breaking the monopoly.” He mentioned.
"There is currently no monopoly in the automotive industry, and if it were assumed that the current automakers were private and worked together to create a large cartel and set the final prices, the existence of a monopoly in the automotive industry can be acknowledged in These conditions were the duty of the Competition Council to enter into this issue and resolve it.” He said.
"The Competition Council is currently creating a monopoly because it sets the prices of the products of these two automakers in a way that makes a significant difference to the market. In this situation, inviting the private sector to produce cars does not work because new product pricing should be set by the government or the Competition Council, which the private sector is reluctant to do.” He added.
"In formulating the economic justification of the product, its profit and loss are considered. With this measure, the possibility of creating investment in domestic and foreign projects is eliminated. Even car importers will not be willing to operate, so the current monopoly is the government system.” He continued.
The current state of the automotive industry will not improve unless infrastructure, including stocks and prices, is improved. As long as we see problems in the transfer of financial resources and restrictions on exports, the automotive industry will not grow, or if it does, it will have a much slower pace than the automotive industry of other countries.
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