The effects of car pricing, which these days, in addition to inflicting cumulative losses on automakers leading to interventionist policies in production, will provoke protests from car shareholders in the near future, so it is necessary to determine an alternative method and implement it as soon as possible. It has been operating since 1400.
Khodrocar - Regulatory pricing is one of the most challenging and oldest problems in the economy. Raw materials to the final product these days are subject to mandatory pricing by various institutions, and in the meantime, the car is subject to mandatory pricing due to the jump in exchange rates and inflationary conditions of the economy in previous years, as well as the existing monopoly, because this product It is currently a capital good and therefore its price must be determined by the Competition Council.
Although the orderly pricing process ostensibly ends in favor of the consumer, this pricing has been done without regard to the increase in production costs, and this trend has resulted in significant losses for automakers.
An examination of the financial statements of automakers in the first nine months of this year shows a high accumulated loss, so that Irankhodro has experienced a loss of more than 11,000 billion tomans during this period.
While the production of cars with mandatory pricing eventually led to a reduction in production and non-response to market needs, the car sales mechanism entered the implementation phase by lottery, which due to the high difference between factory and market prices led to false demand in The market, which made it harder for real applicants to access the car.
Although this method was implemented with the aim of eliminating brokerage from the market, not only was it not successful in practice, but it also created a demand bubble. Widespread rents and car market imbalances ultimately highlighted the inefficiency of this approach.
Finally, it was decided to change the method of car pricing, which was one of the alternative methods of determining and discovering the price, the supply of cars in the commodity exchange.
In this method, the initial plan of which was based on the plan of organizing the automotive industry and proposed by the Iranian Industries and Mines Commission, the car will be offered in the stock exchange and the price will be discovered based on supply and demand, while the base price will be determined by the Competition Council.
Although this part of the plan was severely criticized, stating that it would not be successful if implemented, the Competition Council also rejected the plan.
Meanwhile, the head of the stock exchange organization has recently criticized the mandatory pricing of this method as a factor for damaging the economic foundations and the productive sector of the country.
He called for an increase in car prices commensurate with the cost, saying that many manufacturing companies are present in the capital market and that a large part of society is still a stock market investor today.
A day after Reza Shiva's remarks, the head of the Competition Council reacted strongly to the remarks, stressing that the automaker must manage its production costs and that the council does not care about the cost of the product. He also stated in this interview that with the supply of cars on the stock exchange, we should read the fate of fair car prices.
Regulatory pricing hurts shareholders as much as it does the interventionist policies, as it hurts the producer and the capital market.
Although the orderly pricing process ostensibly ends in favor of the consumer, this pricing has been done without regard to the increase in production costs, and this trend has resulted in significant losses for automakers.
An examination of the financial statements of automakers in the first nine months of this year shows a high accumulated loss, so that Irankhodro has experienced a loss of more than 11,000 billion tomans during this period.
While the production of cars with mandatory pricing eventually led to a reduction in production and non-response to market needs, the car sales mechanism entered the implementation phase by lottery, which due to the high difference between factory and market prices led to false demand in The market, which made it harder for real applicants to access the car.
Although this method was implemented with the aim of eliminating brokerage from the market, not only was it not successful in practice, but it also created a demand bubble. Widespread rents and car market imbalances ultimately highlighted the inefficiency of this approach.
Finally, it was decided to change the method of car pricing, which was one of the alternative methods of determining and discovering the price, the supply of cars in the commodity exchange.
In this method, the initial plan of which was based on the plan of organizing the automotive industry and proposed by the Iranian Industries and Mines Commission, the car will be offered in the stock exchange and the price will be discovered based on supply and demand, while the base price will be determined by the Competition Council.
Although this part of the plan was severely criticized, stating that it would not be successful if implemented, the Competition Council also rejected the plan.
Meanwhile, the head of the stock exchange organization has recently criticized the mandatory pricing of this method as a factor for damaging the economic foundations and the productive sector of the country.
He called for an increase in car prices commensurate with the cost, saying that many manufacturing companies are present in the capital market and that a large part of society is still a stock market investor today.
A day after Reza Shiva's remarks, the head of the Competition Council reacted strongly to the remarks, stressing that the automaker must manage its production costs and that the council does not care about the cost of the product. He also stated in this interview that with the supply of cars on the stock exchange, we should read the fate of fair car prices.
Regulatory pricing hurts shareholders as much as it does the interventionist policies, as it hurts the producer and the capital market.
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