In a situation where the Competition Council announced the increase of car prices again in the spring of this year, not only the previous condition of the council to increase productivity based on the increase of car prices last year was not the criterion for determining the price, but experts in this field attributed the current losses. The automakers have stated that this price increase could reduce the price gap between the factory and the market by increasing production and supply, and ultimately change current sales methods.
Khodrocar - Remarks by Reza Shiva, Chairman of the Competition Council, on a definite increase in car prices in the first quarter of this year, taking into account inflation in the last three months of last year and this year, while the car market is in a severe recession these days. There is no market because purchasing power has fallen sharply.
It is likely that due to the close price gap between the factory and the market, the demand for lottery purchases will decrease. In this situation, automakers will have to anticipate new sales methods. This is something that car experts have acknowledged and believe that the condition for the realization of the vision document in the field of car production is the removal of barriers to car pricing.
"If the price of cars increases to this extent, we will see the mobility of car manufacturers. Undoubtedly, if there is no problem for car manufacturers, production will increase.” Saeed Madani, expert of auto industry told khodrocar reporter.
"Despite the current recession, we are still witnessing the price gap between the factory and the market, and with the increase in prices, this difference will still exist. In this situation, the continuation of the sales method by lottery method continues to increase the number of applicants. Investments will not be small and again the real consumer will be the main loser.” He said.
"The increase in prices applied in the New Year will help the automaker to increase production, but the market mechanism is another mechanism that affects the price of currency and the political situation and economic decisions of the country.” He said.
"This decision can reduce the price gap between the factory and the market, which is currently very high in some cars.” He continued. "One of the criteria of the Competition Council for licensing was to increase the price of the automakers' productivity index, but the price was so high that the selling price increased to such an extent that productivity might only be able to provide part of it.”
"The world is in the original normal situation that in the absence of an obstacle, the difference in car prices with the realization of increasing productivity in various ways is only about 4%, but compensating the price difference in some cases even up to 50% is not possible with increasing productivity. Competition to increase productivity is not very logical.” He mentioned.
"The automakers' production last year reached about one million units, while according to the 1404 vision document, last year's car production should have reached two million units to reach three million units in the forecast year, while the capacity Domestic automakers now have about 1.8 million to 2 million units a year.” He said.
"It is necessary to provide the grounds for increasing production, which automakers are ready to do, but the lack of liquidity, accumulated losses and financial costs imposed on them do not allow them to do so, while these costs are mainly due to the implementation of mandatory pricing policy.” He called.
"By eliminating all the extra costs of carmakers and even the general payment of workers' wages, the cost of the car is reduced by only 5 percent, because when the exchange rate rises by about 300, this 15 percent has little role in compensating for costs.” He added.
"Although pricing is being delayed, delays in implementing this decision have led to further losses for automakers. Increasing productivity is not the answer to automakers 'problems, as automakers' problems are a dramatic rise in the dollar. Witness the excess force, it does not seem very logical.” He said.
According to Madani. The best way to determine a reasonable car price is based on the carmaker's proposal, even if he has a high profit margin for himself, so you can specify the task by requesting a plan for this profit margin from the carmakers. Undoubtedly, if the cost price is high, the demand for purchase will decrease, in which case the carmaker must take action to anticipate the appropriate sales conditions, otherwise they will have to provide the government with the profit margin received for the spending program.
"If the price problem is not solved this year, or if the Competition Council acts with a few months delay and in a drip to issue a license to increase the price of cars, the institution must be responsible for the losses incurred by car manufacturers.” He finally said.
It is likely that due to the close price gap between the factory and the market, the demand for lottery purchases will decrease. In this situation, automakers will have to anticipate new sales methods. This is something that car experts have acknowledged and believe that the condition for the realization of the vision document in the field of car production is the removal of barriers to car pricing.
"If the price of cars increases to this extent, we will see the mobility of car manufacturers. Undoubtedly, if there is no problem for car manufacturers, production will increase.” Saeed Madani, expert of auto industry told khodrocar reporter.
"Despite the current recession, we are still witnessing the price gap between the factory and the market, and with the increase in prices, this difference will still exist. In this situation, the continuation of the sales method by lottery method continues to increase the number of applicants. Investments will not be small and again the real consumer will be the main loser.” He said.
"The increase in prices applied in the New Year will help the automaker to increase production, but the market mechanism is another mechanism that affects the price of currency and the political situation and economic decisions of the country.” He said.
"This decision can reduce the price gap between the factory and the market, which is currently very high in some cars.” He continued. "One of the criteria of the Competition Council for licensing was to increase the price of the automakers' productivity index, but the price was so high that the selling price increased to such an extent that productivity might only be able to provide part of it.”
"The world is in the original normal situation that in the absence of an obstacle, the difference in car prices with the realization of increasing productivity in various ways is only about 4%, but compensating the price difference in some cases even up to 50% is not possible with increasing productivity. Competition to increase productivity is not very logical.” He mentioned.
"The automakers' production last year reached about one million units, while according to the 1404 vision document, last year's car production should have reached two million units to reach three million units in the forecast year, while the capacity Domestic automakers now have about 1.8 million to 2 million units a year.” He said.
"It is necessary to provide the grounds for increasing production, which automakers are ready to do, but the lack of liquidity, accumulated losses and financial costs imposed on them do not allow them to do so, while these costs are mainly due to the implementation of mandatory pricing policy.” He called.
"By eliminating all the extra costs of carmakers and even the general payment of workers' wages, the cost of the car is reduced by only 5 percent, because when the exchange rate rises by about 300, this 15 percent has little role in compensating for costs.” He added.
"Although pricing is being delayed, delays in implementing this decision have led to further losses for automakers. Increasing productivity is not the answer to automakers 'problems, as automakers' problems are a dramatic rise in the dollar. Witness the excess force, it does not seem very logical.” He said.
According to Madani. The best way to determine a reasonable car price is based on the carmaker's proposal, even if he has a high profit margin for himself, so you can specify the task by requesting a plan for this profit margin from the carmakers. Undoubtedly, if the cost price is high, the demand for purchase will decrease, in which case the carmaker must take action to anticipate the appropriate sales conditions, otherwise they will have to provide the government with the profit margin received for the spending program.
"If the price problem is not solved this year, or if the Competition Council acts with a few months delay and in a drip to issue a license to increase the price of cars, the institution must be responsible for the losses incurred by car manufacturers.” He finally said.
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