The SAIPA Pride is inexplicably getting more expensive.
Economy, Auto

Local Auto Companies Allowed to Raise Prices

The government-backed Competition Council that keeps an eye on the prices of local products, including vehicles, has given permission to some local carmakers to increase prices of several models.

Iran Khodro and SAIPA, the two main automakers, are allowed to increase the prices of some models, namely Pride and Tiba (produced by SAIPA) in addition to Samand and several models of Peugeot (produced by IKCO), Tasnim News Agency reported.

The ruling allows SAIPA to increase the prices of Pride and Tiba by up to 1.5%, and gives IKCO space to charge 2.5% to 3% more for its Samand and Peugeot models.

With authorization from the council, 1.5 million rials ($40) will be added to the price of Tiba and Pride which are currently sold for 250 million rials ($6650); Peugeot and Samand models will increase by 4 million rials ($107).

Moreover, imported cars have already become dearer as there is seemingly no control over their prices that are mostly determined by owners of car showrooms and their army of agents.

 Criticism From Chamber

In related news, the head of Industries Commission of Tehran Chamber of Commerce, Abolfazl Roghani, criticized the controversial policy of always “supporting domestic auto production” despite low quality, ISNA reported.

In his opinion “If we are to back local production then we must first oblige our manufacturers to meet the quality requirements.”

Referring to the “unreasonably” high prices of imported models, Roghani said foreign models are sold at 50-70% over and above what they actually cost the in international market, hence “killing the need to compete in and among domestic automakers.”

Imported cars are much more expensive than domestic models due largely to punitive import tariffs that reach up to 100%.

Short URL : https://goo.gl/oaupdX
  1. https://goo.gl/qaMQW1
  • https://goo.gl/7WoiT8
  • https://goo.gl/9HYP6Y
  • https://goo.gl/6E2pA1
  • https://goo.gl/DYjAAa

You can also read ...

Iranian Insurance Firms' Premium Income Exceeds $1.2b in H1 (Mar-Sep 2018)
Iran insurance industry earned 183 trillion rials ($1.28...
Italian investment companies remain active in Iran, despite...
Iran, India Leading Global Ammonia Capacity Growth
Iran and India will continue to lead the global ammonia market...
Iran Auto Industry Hither and Thither
Over the past few days, Iran’s beleaguered auto industry has...
Iran-Russia Non-Oil Trade Sees Over 80 Percent Hike (September 2018)
Iran traded 956,662 tons of non-oil commodities worth close to...
First-Timers Constitute 20% of Tehran Homebuyers
First-time homebuyers have accounted for a 20% share of total...
US Sanctions Against Iran Ridicule Int'l Norms
Foreign Ministry Spokesman Bahram Qasemi on Wednesday...
Iran Slips 1 Spot in WEF's Global Competitiveness Index
The World Economic Forum’s “Global Competitiveness Report 2018...

Add new comment

Read our comment policy before posting your viewpoints


Local Auto Companies Allowed to Raise Prices | Financial Tribune


The website encountered an unexpected error. Please try again later.