Baku, Azerbaijan, Dec. 25
By Khalid Kazimov – Trend:
The recent surge in the value of dollar against Iran’s national currency rial as well as the hiking prices of unprocessed materials in the international markets may lead to a considerable rise in the prices of home-made cars in the Islamic Republic.
Iran’s Tasnim news agency has reported that the surging prices of steel products and petrochemicals in the international markets have increased the expenses of car part makers in the country.
On the other hand, the car part makers face lack of funds due to difficulties in receiving their payments from car manufacturers.
Therefore, the car part makers demand the car manufacturers to purchase spare parts at higher prices in order to overcome the existing difficulties, the report added.
The news agency quoting a car part maker speculated that the car prices in the domestic market should increase by at least ten percent in order to cover the gap in prices driven by higher value of dollar and commodities.
The value of dollar against Iran’s national currency, rial, has significantly increased in the country’s free market over the past several weeks surpassing 40,000 rials on December 25 which stood at about 37,000 just one month ago.
The output of Iranian carmakers over the first eight month of the current fiscal year (starting March 20) surpassed 820,000 vehicles indicating a 35.9 percent growth year-on-year.
According to the country’s economic development plan, Iranian carmakers are expected to produce three million cars per year by 2025.
In the meantime, the car part makers are projected to make $25 billion worth of car parts and export $6 billion worth of car-related products.