Simultaneously with the continued turmoil in the currency exchange rate in Iran, the prices of both domestic and foreign cars in the country have risen, with reports indicating an increase in the prices of imported cars to 12 billion rials.
On Thursday, February 1, the regime’s Donya-e-Eghtesad newspaper reported that the upward trend in prices began about a month ago, but in the past 14 days, there has been a significant surge in the automotive market.
The newspaper’s report emphasized that car prices have experienced an average increase of 3.3% in the last two weeks.
Analyses show that the highest price growth is related to used imported cars, with an average growth of 7.1%.
A review of prices indicates that domestic products have, on average, increased by 200 million rials (approximately $345), representing a 3.3% growth, while assembled cars have seen a 290 million rials (approximately $500) increase, equivalent to a 1.87% price growth.
The increase in the price of cars is influenced by the rise in the value of the US dollar, one of the main factors contributing to price fluctuations in the automotive market.
Among other influential factors in the past month are the Competition Council’s withdrawal from car pricing, as well as the government’s decision to determine car prices, taking into account total costs and a 2.5% producer profit from the next year.
Another notable event in the Iranian market is the prices of imported cars. The prices of used imported cars in Iran are several times higher than their global market prices, with the government being the sole beneficiary, allowing the import of used cars and receiving customs duties.
This situation unfolds while a year has passed since the statements and plans of the Ministry of Industry, Mines and Trade for the import of brand-new cars and used car imports, and yet no significant developments have taken place in this area.
A review of news in this sector shows that in the past year, there has been no increase in production performance by domestic car manufacturers, no stabilization or reduction in prices, and the promised imports of cars for market regulation have not materialized.
Low quality, exorbitant prices, lack of warranty and standards, and the pollution of domestically produced vehicles are among the criticisms raised by experts.
Accumulated losses of three Iranian car manufacturers reach 1,740 trillion rials
Reports from Iranian media indicate that the accumulated losses of three major Iranian car manufacturers reached 1,740 trillion rials (approximately $3 billion) by January 2024.
The most indebted among them is Iran Khodro, with its debt reaching 1,040 trillion rials (approximately $1.79 billion) in January, equivalent to twice its registered capital.
The continued growth of debt for the three Iranian car manufacturers comes as in May 2023, the average price of domestic cars increased by 40%.
The accumulated losses for all three companies exceed their registered capital, placing them on the verge of bankruptcy according to law.
On the other hand, the global automotive market reached nearly $2.9 trillion in the past calendar year and is expected to approach $3.5 trillion by the end of this decade.
In the past year, sales of electric and hybrid cars worldwide experienced a 31% leap, while the Iranian car market still predominantly produces ICE cars.
In 2018, the Iranian regime banned the import of foreign cars, practically monopolizing the entire market in the hands of domestic car manufacturers, subsidiaries of the government.
In the midst of this, car market intermediaries are reaping substantial profits, and the Iranian automotive industry is making no progress.
It is worth mentioning that the main shareholders of Iranian automotive companies are the Islamic Revolutionary Guard Corps (IRGC), and the substantial profits derived from the monopoly of the automotive market in Iran are used to fund terrorism in Middle Eastern countries.
