During the last 7 years, we have seen a significant increase in car prices in the Iranian market. So that the price of some cars has increased by thousands of percent!
According to Gadget News’ automotive news section, the car market in Iran has witnessed a staggering and alarming price increase in the past seven years. The transformation of a car from a consumer product to a capital product is one of the most important reasons for this jump in prices. In order to deal with this capital view, measures such as strengthening the mechanisms for maintaining the value of household savings through investing in productive projects, taxing capital demand and increasing the supply of cars seem necessary.
Car price increase in the last 7 years
The Automobile Industry Organizing Law, which was approved in 1400 with the aim of creating competitiveness in this industry, was trying to increase the supply and regulate the chaotic automobile market by using the means of importing new and used cars. But obstacles such as currency restrictions and standard problems have slowed down the import process and have not had a significant impact on the market. According to statistics, only about 11,000 cars entered the country in 1402, while forecasts indicated the arrival of 200,000 cars in the six months leading to the spring of 1402.
On the other hand, studies show that the production and sales of the country’s two largest car manufacturers, Iran Khodro and Saipa, have faced a 6 and 16 percent decrease in the first eight months of this year compared to the same period last year. This decrease in supply, along with high demand, has fueled further price increases.
A few thousand percent increase in the price of Hyundai Tucson
The report of the Majlis Research Center presents a horrifying picture of this price increase. According to this report, the prices of imported, assembled and domestically produced cars have experienced several thousand percent growth between September 2016 and August 2014. For example, the imported Hyundai Tucson, which had a price of 162 million Tomans in 1996, reached 4 billion 450 million Tomans in August 1403, which shows a growth of 2646%! Jack S5 assembly has also reached 1.7 billion tomans with a growth of 1689% from 95 million tomans. Even the domestically produced Peugeot 207 is not an exception to this rule and with a growth of 1544%, its price has increased from 45 million tomans to 740 million tomans.
This terrible statistic was established while the price of the dollar has increased from 3,800 tomans to 59,000 tomans. This situation shows that the car market in Iran is heavily affected by the fluctuations of production, imports and the country’s economic conditions, and requires serious and urgent measures to control prices and return peace to this chaotic market.
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