Iranian parliament members in step with the government are moving ahead with a proposed plan to relax state sway on the country's auto market, a move aimed at removing the car price caps that are currently in place for mid-range vehicles.
A member of the Majlis special committee for privatization told reporters on Tuesday that by the end of the current fiscal (March 2019), the government will no longer exercise control over the price of vehicles, adding that the administration is moving toward "free competition in the auto market" and as such, "we are revising the rules on price-setting in the sector," Mehr News Agency reported.
During a recent meeting at the Parliament, attended by auto industry insiders and reporters, Hamidreza Fouladgar said as per Article 44 of the Constitution, the Competition Council should function merely as a supervisory entity without direct authority over car prices.
The council, headed by Reza Shiva, is a state body that keeps an eye on many domestic products, including cars, and sets prices for some goods including vehicles costing 450 million rials ($10,714) or lower.
August 11, 2018 17:31
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Iranian MPs Put Plan Into Motion to Deregulate Auto Market
After years of pressure from the strong lobby of local automakers, Iranian lawmakers are pushing ahead with a motion which will end the government’s sway on car prices
The new development, if not later reversed, can bear immense implications for manufacturers and parts makers, which have for long raised objections to the government’s intervention in the market
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