Tehran, Iran, Jan.13
Trend:
Iran is to allocate $3.5 million worth funds to its major auto manufacturers SAIPA and Iran Khodro to boost the production line.
"To improve the production conditions of the country’s two major automakers, $3.57 million worth funds as working capital will be allocated to them," the Head of Consumers and Producers Protection Organization Abbas Tabesh said at a television interview, Trend reports citing IRIB.
"The rise of car prices by the automakers was aimed at increasing the production and balance supply and demand, calm the market and boost employment in auto industry,” he added.
“The foreign currency rate fluctuations hit the auto market, while the rise of prices for raw materials has led to price hikes in the market, where cars are traded far more expensive than their original production price.”
Referring to total auto sale by SAIPA and Iran Khodro he said that over 920,000 vehicles will be sold till the end of this Iranian year (March 21, 2019), but the production of around 300,000 pre-sold cars is delayed, so 20 percent of the future production should be set for immediate sale to cut the high prices in the market.
He noted that the recent auto prices announced by SAIPA, Iran Khodro and Pars Khodro require expert review of the Consumers and Producers Protection Organization.
The official pointed out that no automaker is allowed to increase prices until August 22.
