Competition Council’s reaction to the president’s order to cancel the car price approval

In a statement, the Competition Council opposed the president’s order to cancel the car price approval and explained the reasons for the increase in the price of assembled cars.

Recently, the president ordered to cancel the decision to increase the price of assembled cars by the Competition Council. In this regard, the competition council held a special meeting and explained the reasons for the increase in the price of assembled cars, while not withdrawing from its recent resolution.

The reasons for the increase in car prices by the Competition Council

The statement of the Competition Council in response to the president’s order to cancel the car price approval and the reasons for the increase in the price of assembled cars is as follows:

1. Before the entry of the competition council and the recognition of monopolies in the automobile market, the pricing of the products produced by the assembly car manufacturers was done based on the decisions of the board of directors of the automobile company, and due to the monopoly created in the automobile market, which was mainly due to the rules and regulations governing the market, prices were offered to customers much higher than the current approvals of the council (in the form of direct sales or through supply on the stock exchange).

2. Preservation, continuation and realization of production, which is one of the main elements of the slogan of the year by the Supreme Leader, requires creating motivation for the continuation of production based on the presented plans and solving problems based on the aforementioned goal, and the lack of profitability or imposing losses will definitely endanger and stop this part of production, which is mainly carried out by the private sector.

3. Modifying prices not based on the opinion of car manufacturers, but only based on the review of documents and accounting data and financial statements approved by legal auditors, which have been reviewed and finalized by the Consumer and Producer Protection Organization as an official, specialized and governing authority for price calculation. Currently, some manufacturing companies are applying for higher prices than those announced by the Competition Council, but only the requests based on the documents approved by the aforementioned organizations are considered as criteria for action.

4. It is emphasized: the prices approved by the Competition Council in the 584th meeting have decreased compared to the prices used by automobile companies, which is quite noticeable in the car market, and it is expected that stability in the current market will continue with the continuation of production and increase in supply and the realization of the import program that was demanded by the parliament and the honorable government and was emphasized in the framework of the 543 directive approved by the council and is being monitored.

5. Finally, it is reminded: The Competition Council welcomes any expert and technical investigation regarding the basics and reasons for the price increase of the mentioned manufactured products and any measures that cause more competitiveness in the car market and the welfare of consumers, and always supports the policies and programs of the honorable president and the honorable government.