Sci & Tech

Sanctions, Command Pricing Roil Domestic Automakers 

According to an automotive expert, car manufacturers are experiencing significant financial losses due to supply-demand problems and command pricing  
Sanctions, Command Pricing Roil Domestic Automakers 
Sanctions, Command Pricing Roil Domestic Automakers 

Domestic automakers are experiencing losses due to command pricing and supply-demand problems, according to an automotive expert.
"The conditions created by sanctions in the last few years have reduced the production of major car manufacturers due to the rise in overhead costs. This while the Ministry of Industries, Mining and Trade did not permit an increase in prices. As a result, Iran Khodro Industrial Group suffered an average loss of 200 million rials [$634] and SAIPA Automotive Group registered a loss of 150 million rials [$476] from the sale of each car, which indicate an average loss of 175 million rials [$555] per car," Reza Aryarad was also quoted as saying by Donyaye Khodro.
Asked what is the best solution to reduce the losses of domestic car manufacturers, he said liberalization of car imports could be used by the government to balance the market, as it would allow those who have the financial ability to buy foreign cars. 


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