In a situation where after a significant increase in inflation, we are now witnessing a downward trend in inflation in the country, the Competition Council has revised the car pricing formula and by eliminating the inflation rate, has replaced the market price in the pricing formula.
At the same time, contrary to the economic principles that the growth of production volume reduces the cost of production and the price of goods, it has been decided that automakers will increase the price of their products and increase the price of their products. This issue has been approved by the Competition Council, and now with the growth of car production, more money is to be received from the people.
In this regard, Reza Shiva, Chairman of the Competition Council, stated that a new formula has been determined for car pricing, and based on this, we support car prices in the market once every three months. “Inflation has no role in the new formula, but on prices,” he said. The market average is focused. In the winter quarter, the factory price changes will be based on the market price, the new price will be applied to the car from February.
He added: “The important point of the pricing formula is the issue of production.” If production does not increase, we will not have a price increase. The higher the production, the higher the price.
Liberalization, pricing of 45% of cars and competitive production democratization
What the automakers and the Ministry of Industry have been asking for over the past month or two is to liberalize the price of 45% of domestic cars, which the Competition Council has now agreed to. According to Shiva, the old formula of the Competition Council will be used to price 55% of the cars and the new formula will be used for the remaining 45%.
This liberalization comes at a time when car imports have stopped and there is virtually no competition in the automotive industry. As a result, according to the Economic Council, the prices of goods that have a monopoly market in the country should not be free. In this case, Shiva in 1993, when carmakers were still pursuing car price liberalization, Shiva, chairman of the Competition Council, stressed that the car market monopoly is obvious and now more than 90% of cars are owned only by two major domestic car companies, Iran Khodro and Saipa. It is said that the fact that the number of car manufacturers in the country is 17 factories is an incomprehensible claim and in fact a demagogy.
He had said: out of 17 factories announced by the Automobile Manufacturers Association as car manufacturers, 15 factories are only assemblers and the production of these factories, due to their low share of the car market, has the necessary impact in order to create competition in The market does not have.
Citing an example, he named the Chinese car manufacturer MVM as one of the 17 car production and assembly factories in the country and said: “This company has a very low production capacity of passenger cars in the country and the production rate of this The company is not comparable to the mass production of Iran Khodro and Saipa.
According to Shiva, a competitive market is a market in which actors and those involved in production alone have no effect on price, and if the producer reduces production, there will be no price impact on the market, because competitors will make up for the lack of production. کرد.
Today, Shiva said in a new statement that the Ministry of Industry and the Development Organization are seeking the support of other automakers except Iran Khodro and Saipa to make the market more competitive. Thus, he agrees that the car market is not competitive, but it is not clear what is the reason for the decision of the Competition Council to liberalize the price of some cars in the non-competitive market?
According to him, the pricing formula for some cars has changed and pricing is based on the average market price.
Today, however, he uses the title “new pricing formula” instead of “price liberalization” and believes that a different formula has been considered for pricing a number of cars with instructions. Liberalization occurs when we have a competitive market and there is another competing car in the manufacturer. The other three automakers have now been added to the two major automakers and are looking to strengthen their vehicles. Automakers are set to increase production by 50 percent, and private-sector automakers will follow suit.
Price liberalization of 18 car models
According to a new Competition Council resolution, cars with low prices and circulation, 55% of automakers’ production is allocated to cars that are more economical and can be bought by the general public, they follow the pricing guidelines of the Competition Council, 45% of cars are subject to the new formula be.
According to the chairman of the Competition Council, 18 cars will be included in the new pricing formula, including Peugeot Pars, Peugeot 207 automatic, Peugeot 207 manual, Samand Soren Plus, Rana Plus, Rana Plus TU5, Dena Plus turbocharged, Dena Plus automatic turbocharged, Haima Turbo Manually, Haima becomes turbo automatic, Tara, Saina S, Quick, Falcon, Aria, Brilliance and Changan.
He continued: “Until today, all those who have registered in the lottery are subject to the old pricing formula and the new formula will be used from January 1st.”
He believes: “The market is in a good condition and prices are falling, and we are confident that with the increase in production, the price of the factory door car will be close to the market price.”
This statement by Shiva is contrary to the previous promises of the officials of the Ministry of Industry and Automobile Manufacturers, who always emphasized the need for the market price to be closer to the factory price, now apparently the factory price is supposed to be high enough to approach the market price. Under these circumstances, it is not clear how long it will take for automakers to increase production and to what extent it will affect market price adjustment?
Seyed Mostafa Saffari, a consultant to the Competition Council, recently announced the council’s decision to liberalize the price of luxury cars with a 50 percent increase in production and said: “These cars have been removed from mandatory pricing.”
He had said about the price of some cars out of the mandatory pricing: “Cars have been divided into two categories for pricing, which include economy cars or high-circulation cars and luxury cars.”
The chairman of the Competition Council today unveiled the new decision of the council to price cars, and carmakers and parts manufacturers have been waiting for some time for this issue to be discussed at the summit of the powers that be, with their approval, car price liberalization will take place.
An official in the automotive industry also said that in order to liberalize prices, the issue must be approved by the heads of forces, which has not happened so far. had fallen.
Now, if the new decision of the Competition Council is implemented, it seems that the people who listened to the promise of the officials and kept their hands to buy a car will suffer again.