Auto Part Prices to Rise

Auto Part  Prices to Rise Auto Part  Prices to Rise

The secretary of the association of auto part suppliers said talks with automakers have been held and the request for a minimum increase of 15 percent rise in prices of spares has been delivered to automakers Persian Khodro reported on Friday. Sassan Ghorbani argued that the payroll, VAT, the cost of labor, raw materials and production overhead have left them with no option but to raise prices. He added that the negotiations with automakers are still ongoing.  Ghorbani stressed that the increase in prices would be at least 15 percent, reminding that it would be proportionately raised for different parts. Iran’s auto part suppliers have, in recent years, been adversely affected by the general slump in the automotive industries. Reports indicate many third party manufacturers have struggled with declining sales. Iran Khodro and Saipa have begun dealing with Chinese auto part makers, putting further pressure on local suppliers.