Why didn’t the supply of cars to the market go hand in hand with the production?

Statistical observation of the research arm of the parliament on the situation of car production in the current year, as well as the sales report of car manufacturers submitted to the stock exchange at the same time, shows the paradox of production and car sale It is in the year 99. According to the statistics of the Research Center of the Islamic Consultative Assembly, car production has been growing since May this year, in a situation where the upward trend in production has not only not increased car supply but also has not had an effect on reducing market inflammation. What is clear is that with the increase in production, there is an expectation in the demand sector that the supply of cars has improved and can meet the needs of applicants, while customers did not feel much production growth this year because the market is still on a defective supply circuit. It turned to the automakers. But the question that arises is why the car produced by the automakers is stored in the parking lot of the automakers instead of being offered to the market and the customer’s hand is short of receiving the vehicle? As mentioned, with the exception of April, when production is always declining due to the Nowruz holiday, we are witnessing a month-by-month increase in production from May this year to November. As to why production is growing in the first place, we should mention the routes discovered by automakers to circumvent sanctions, as well as the supply of imported parts. It is clear that after two years, manufacturers have found new ways to circumvent sanctions, improve the supply of parts from abroad and, while reducing the rate of decline, are also on the path to growth. But forcing parts to internalize to make up for deficits on production lines was another way to grow production. Accordingly, the Ministry of Silence has held several domestically made tables since last year, during which some foreign parts are said to have been produced domestically. With the internalization of these parts, less dependence on the outside and, consequently, better production conditions. But the third step in improving the car production process was to provide facilities to carmakers. With the approval of the Monetary and Credit Council, about one thousand billion tomans of facilities were paid to automakers in the last days of 1998, and it is said that most of this amount was allocated to automakers and their overdue claims. By granting these facilities and financially charging the parts manufacturers, the production process and supply of internal parts also accelerated and helped the car production to grow faster. Therefore, according to the conditions provided, we finally saw the growth of car production in 1999, while the market was deprived of the taste of this event and did not feel pleasant about the upward trend in production this year. Since the beginning of 1999, the market has been facing an unbelievable increase in prices and books, and traders and speculators have been the main market makers. Automakers, on the other hand, relied on lottery sales to inject a number of cars into the market each month. According to the country’s industrial officials, the same number of cars offered by car manufacturers were sold at astronomical prices on car buying and selling sites, and the real customer had little access to them.

Therefore, the market situation from the beginning of this year shows the paradox of production and sales, which means that the products that are also covered in the statistics of the Parliamentary Research Center have not been directly marketed. It is clear that these products were either incompletely produced and could not be commercialized and went directly to the carmaker’s parking lot, or the carmaker preferred to stay temporarily in the parking lot temporarily with the pricing of the three because of the order pricing that resulted in losses. The moon can somehow compensate for its loss.

Production and sales are not compatible

As mentioned, the main root of the market deprivation from the growth of car production is regulatory pricing.

This year, the Competition Council, as the car printer, replaced seasonal pricing with annual pricing, which led to the carmaker delaying in offering products to the market.

Over the past two years, with rising production inflation, automakers have been unable to sell their cars at cost and normal profit, and the Competition Council and other regulatory bodies, as the determining authority, set prices regardless of production losses. The result was clear, an increase in accumulated losses and production losses. This year, as mentioned, the Competition Council replaced seasonal pricing with annual pricing, which encouraged the automaker to delay delivering products to the market to take advantage of seasonal price increases.

Phrases such as car hoarding by the carmaker have been commonly used by regulators this year; Although the automaker claimed that there was an accumulation of defective products in the parking lots; With this in mind, it seems that the manufacturer is interested in selling part of its products at the right time and at a higher price to compensate for the production loss.

But defective products are also rooted in grammatical pricing. When the manufacturer is unable to pay its debt to the component maker and does not receive a normal profit from the production of products, it is forced to produce cars that cannot be commercialized. In this regard, yesterday Fars News Agency had prepared a report on the latest statistics of production and delivery of car manufacturers during the first 9 months of this year, which shows the production of 654 thousand cars in this period, while 92,000 defective cars have been stored in the car manufacturers’ parking lot. Is. This statistic means that out of every 7 production cars, one car has gone to the parking lot due to a defective part. At the same time, there are 10,447 complete cars in the parking lot sold by car manufacturers, the whole of which belongs to Saipa.

As for why car manufacturers and production are different, Hassan Karimi-Sanjari, an automotive expert, says: “The reason for this event should be sought in the first place in the ineffectiveness of the car policy-maker’s strategy for managing the demand side.”

The automotive policymaker goes on to say that the automotive policymaker does not use pricing leverage, which is the most important lever available to manage the market, and tries to manage the demand side of the routes that are not very effective, but because these routes are not efficient enough, the policymaker A car cannot achieve its goal. Karimi-Sanjari believes that in addition to the inefficiency of policies adopted to manage demand in the market, we see that the car market in 1999 is facing an overflow of demand from 1997 and 1998. The car expert says that in 1996, the year before the return of sanctions, we saw that more than 1.4 million vehicles were numbered; Therefore, it can be said that the country’s car market has a capacity of about one million and 300 to one million and 400 thousand demands for cars.

He goes on to say, however, that in 1997 and 1998, due to the return of sanctions and the decline in production, their automakers were able to produce about 800,000 vehicles. Therefore, in these years, about 600 Haraz demand has not been answered.

Karimi-Sanjari emphasizes that the unanswered number of this demand in 1997 and 1998 caused it to overflow in 1999, and we see that in the best conditions, one million demands have been added to the current year’s demand in the last two years.

According to Karimi Sanjari, this could be the first reason why the growth of car production in the market is ineffective in terms of demand.

This car expert continues that the wrong policies regarding the pricing of cars at the source on the one hand, as well as the inflationary conditions prevailing in the country’s economy on the other hand, led to the presence of stray capital in the car market.

Karimi-Sanjari believes that in terms of grammatical pricing, a new demand has formed in the market, which can be called as a demand for investment. In fact, this part of the demand does not buy a car to use it, but considers the car as a capital good to In this way, to insure its Rial capital against the inflationary situation prevailing in the country’s economy.

The automotive expert emphasizes that if the Ministry of Silence, as the macro-policy maker of automobiles, renounces its insistence on pricing the products of automobile companies and allows the prices of cars to be determined based on the supply and demand mechanism, they will mark it with a double arrow.

According to the automotive expert, in addition to improving the financial situation of automakers, a significant part of the demand for investment will be removed from the market and only real demand will remain at the bottom of the market, because there is no longer a price gap between factory and market prices. Capital to enter to use it.

Production and sales details for the current year

As mentioned, despite the growth in the production of car companies, we saw that this did not happen in the supply sector. The lack of growth in supply to the extent of production growth indicates that the supply route has not been very smooth.

During the eight months of last year, only in August and September, we saw that the supply of car companies has experienced a growth relative to production. Of course, it should be noted that in August, automakers usually go on summer vacation due to the recovery of their production lines, and on the other hand, in September, the number of sales was only 12 units more than production, so it can be concluded that automakers in For the past year or so, they have not sold as much as they did.

Now, we will look at the details of the production and sale of car manufacturers during the mentioned period to see what ups and downs the production and supply of car manufacturers has experienced.

In April of this year, due to the Nowruz holiday and the outbreak of the Corona virus, the three major automakers in the country have produced 29,134 units, while in return, only 27,013 units have been sold.

In the second month of this year, the three major car companies completed the production of 89,472 units of products in their product portfolio, but offered only 61,794 vehicles.

In the last month of the spring season, automakers produced 85,340 vehicles, but still delivered less than the production number of 83,563 vehicles to applicants. The country’s three largest automakers produced a total of 83,853 units in July, but the automakers’ sales department accounted for 62,548 units.

In the second month of the summer, however, sales outpaced production due to the automakers’ summer break.

In August 1999, the production of 60,162 vehicles in automobile companies was completed and automakers offered 63,747 vehicles to the market.

In September of this year, the number of production and supply became so close that carmakers invoiced 12 units more than car production.

This month, the country’s three largest automakers produced a total of 73,902 vehicles and traded 73,914 vehicles.

In the first month of the autumn season, the production of 70,627 vehicles was recorded in the records of the three major automakers in the country, while 66,472 units were sold.

November 29, the three largest automakers in the country produced 69,947 vehicles, in a situation where 67,568 vehicles have been sold.