Automotive Recession Explained

The domestic automotive market is experiencing one of the biggest recessions ever and a car expert lists the reasons behind it as well as the impact of car imports in the closing days of the current Iranian year (ending March 20).
Car dealers claim that the current recession is unprecedented which, surprisingly, followed the announcement of government plans to liberalize car import and supply economy cars. 
According to Sajjad Hemmati, CEO of Arian Khodro Pars and an automotive expert, buyers have stopped buying cars and believe that car imports will cause prices to decline and that they could buy a good quality foreign vehicle at an affordable price, Donyaye Khodro reported.
“However, domestic car manufacturers have signed a contract with Chinese automakers which, in my opinion, will not bring about major changes in the market,” he added.
Commenting on market condition in the last two weeks of the current Iranian year, the expert noted that customers are still reluctant to buy and sell cars and the recessionary situation will probably continue until the last days of the year because the financial condition of people has not changed.