Tehran, Aug 18, IRNA -- Mismanagement of car pricing started 40 days ago, as the Competition Council came under fire, Iran Daily?s Tuesday edition writes in its opinion column, Tuesday edition of the English language newspaper Iran Daily writes.Industries, Mines and Trade Minister Mohammad Reza Nematzadeh announced last week that car pricing is the responsibility of the Competition Council and opposed a 10-15 percent reduction in car prices.
The minister is obviously speaking from a shareholders perspective. It is clear that he wishes to see an increase in the prices of stocks in which he has invested.
All members of Majlis Industries and Mines Commission and even the Competition Councils members reached an agreement that the formula to calculate car price announced by the council was wrong.
Legally, the Competition Council is only responsible for announcing car prices and not setting them.
If the government were to distance itself from the auto industry and let carmakers decide by themselves, there will be no need for the Competition Council, which only creates problems regarding car prices every year.
As a result, people will determine the car prices, as they regulate those of other commodities.
In case the government lets carmakers work independently, the country will witness an increase in car production in the short run and rows over tariffs will also be minimized.
In case the Iranian car industry continues to operate as in the past, not only its problems will not be solved, but they will also worsen.
Unlike other countries, Irans auto industry is highly dependent on resources of banks, which attract a large amount of liquidity.
Increasing auto imports and making automotive industry the third axis after oil and gas industries are appropriate strategies for boosting the car industry.
Car imports will give rise to competitiveness, as the domestic auto industry enhance car quality and customers get more options to choose from.
By IRNA
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