Business And Markets

Parliament Urges Lower Car Prices

Parliament Urges Lower Car Prices
Parliament Urges Lower Car Prices

After a thorough study of Iran’s car production and the recent increase in car prices, lawmakers believe prices should reduce 30%, an MP said.

Nader Qazipour, a member of the committee to investigate and probe the auto industry, said the committee has identified numerous abuses and violations in the industry and sent six different cases to the judiciary, while another seven cases are ready to be sent to the court.

The parliament says the recent rises in car prices have no legal basis and that the automakers are taking advantage of their oligopoly in violation of the consumers’ rights.

The lawmakers’ opposition was expressed after the Competition Council yielded to pressure by carmakers and increased car prices by 30% in July. Following the rise, the MPs threatened they would grill the minister for industry, mine, and trade, Mohammad Reza Nematzadeh over the price hike. In addition, the government spokesman, Mohammad Baqer Nobakht, said such an increase was not admissible. Nobakht criticized the council, urging it to reconsider its decision.

The Competition Council is the official authority responsible for setting domestic car prices in the market.

Many parliamentarians say the main reason for the latest hike in the prices of cars is mismanagement in the auto industry. They argue that a limited group of people are benefitting from the car industry and that they are not ready to give up their interests.

“Unfortunately, the auto industry is the backyard for politicians instead of being an enterprise”, said Qazipour.

The lawmaker also criticized the national television, IRIB, for advertising unlicensed companies, arguing that many of the leasing companies advertised are pyramid corporations in reality.

The country’s major automakers -Iran Khodro, Saipa, and Pars Khodro- have constantly been criticized for not organizing certain representatives to sell their cars in installments.

Car dealing companies are the main connection between domestic automakers and consumers in Iran, which creates opportunities for fraudulent activities.