Import of Cheaper Cars Will Hurt Domestic Automotive Industries

If the prices of imported cars are lower than those of Iranian cars, the domestic car and component industries will face problems, according to a member of the board of directors of the Association of Homogeneous Propulsion Industries and Component Manufacturers. 
“In the field of imported car, the government is considering a special mechanism that sets higher or lower tariffs for cars with different engine power. Such a mechanism, while creating competition and improving the technical knowhow of car and parts makers, will not harm domestic production,” Alireza Khalili was quoted as saying by Khabar Khodro.
“Cars that enter Iran must be at a price level that helps create balance in the domestic market, and achieves the equilibrium in comparison with the prices of imported cars in the international market,” he added.
Noting that tariffs determine the price, the official said, “The prices of imported cars are naturally lower than the prices of domestic cars, and what increases the final price is the [customs] tariff rate. Therefore, the establishment of balance in this field can prevent any harm to the domestic cars and parts manufacturing industries.”