Gov’t Policy Changes to Further Raise Car Prices

While the subsidized currency does not affect the automotive industry directly, its removal will result in a 10-15% increase in vehicle prices
Gov’t Policy Changes to Further Raise Car Prices
Gov’t Policy Changes to Further Raise Car Prices

The 10-15% increase in total costs due to the removal of subsidized currency will have a direct impact on the prices of automobiles and related parts, a faculty member of Iran University of Science and Technology said. 
“Despite the fact that in the fiscal 2018-19, vehicles were included in the category of goods subject to receiving the subsidized currency as a basic commodity, it did not come into force,” Amir Hassan Kakaei was also quoted as saying by Khabar Khodro.
“For a short period of time, the government’s subsidized currency was allocated to automobile and component producers, but soon it was calculated at the open market rate of 80,000 rials [instead of 42,000 rials per $1]. After that, all currencies received by the automotive and parts industries were based on Nima and Sana forex rates.” 


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