A total of 500,000 domestic cars will be sold through the national online car registration portal, according to the spokesman of the Ministry of Industries, Mining and Trade.
“All domestic car manufacturers, including Iran Khodro, SAIPA and private sector car manufacturers, except Bahman Group, will participate in this scheme,” Omid Qalibaf was also quoted as saying by Donyaye Khodro.
He added that the prices of cars will be determined by the National Competition Council.
According to the spokesman, conditions for car registration are the same as those announced earlier and as promised by the Industries Ministry, after the cars are sold via this scheme, car lotteries will be halted.
Qalibaf noted that about half of the price of each vehicle will be blocked as a deposit in the customers’ bank account, which will differ from car to car.
“If the demand for a car exceeds supply, the people on the waiting list will receive their cars later. The cars will most likely be delivered in about three months to a year,” he said.
“With the mass supply of domestic cars, car imports and imports from free zones, the domestic car market condition will improve and help reduce prices.”
Qalibaf emphasized that the cars sold through the national online registration portal will not be listed on the commodity exchange.
“Domestic cars will be supplied through this scheme after implementing the car import plans and clarifying the status of customers,” he said.
Earlier this month, the National Competition Council announced that all domestic car companies must sell their products through the national online registration portal.
In the past few months, some companies had been allowed to offer a limited number of cars through the Iran Mercantile Exchange, which gave rise to controversies and complaints that were widely reported in the local press and social media.
Defending the latest decision, the council said monopoly in the chaotic domestic car market has increased.
“The high Herfindahl-Hirschman Index, rising demand, the ban and/or restriction on car imports over the past several years plus limited options for car buyers” have made a bad situation worse by pushing up car prices to historic highs, Qalibaf said.
HHI is a common measure of market concentration used to determine market competitiveness, often pre- and post-merger and acquisition transactions.
Vehicle Production Exceeds 1 Million After Four Years
Vehicle production has exceeded 1 million units for the first time in four years, as 1.2 million vehicles were produced from the beginning of the current fiscal year (March 21, 2022), the head of the Ministry of Industries, Mining and Trade’s Automotive Industry Office announced on Feb. 25.
“After the reinstatement of international sanctions in the fiscal 2017-18, there was a significant fall in vehicle production and the production of incomplete cars started. Until last year, our vehicle production never exceeded 800,000. In the current fiscal year, it has reached about 1.2 million vehicles, which indicate a noticeable increase,” Abdollah Tavakkoli Lahijani was also quoted as saying by IRNA.
Announcing that the production and supply of cars have been restored, the official said, “Currently, there are no restrictions or problems in the domestic car industry, as in the last weeks of the current Iranian year [ending March 20, 2023], we are witnessing a high supply of cars.”
Tavakkoli explained that the car manufacturer announces the car delivery time to the customer based on its stable production flow and if the customer wishes, the car’s registration process can be finalized based on the announced delivery time.
“The domestic car market will become competitive in the next Iranian year. With the mass supply of domestic cars to the market, which has coincided with the promised car imports, Iran’s car market is expected to become more competitive in the next fiscal year. In this competitive market, car manufacturers and importers may use various sales methods, such as leasing, to sell their vehicles,” he said.
Tavakkoli noted that the Industries Ministry has set the production target for next year at 1.8 million units, which “challenging target” can be fully achieved by relying on knowledge-based companies and domestic supply chain.
Iran’s car manufacturers produced 1.12 million vehicles in the first 11 months of the current fiscal year (March 21, 2022-Feb. 19), registering a 25% growth compared with last year’s corresponding period.
The monthly car production record was broken in the 11th month of the current fiscal year (Jan. 21-Feb. 19) with the production of 131,000 cars for the first time in five years.
