According to the Shahr-e-Bourse, several months after the implementation of the car price liberalization policy , the domestic market continues to experience turbulent and volatile days. Prices for most high-volume models have not only not decreased, but have also repeatedly jumped, putting more financial pressure on buyers and bringing the market transaction level to its lowest level in recent months. Market activists say that the continuous increases in factory prices have caused new waves of price increases in the free market, and the gap between these two price levels has become more apparent than ever.
Price liberalization and the beginning of a new wave of inflation
The price liberalization policy, which was implemented with the aim of making prices realistic and preventing accumulated losses for automakers, has in practice led to a sharp increase in the price of domestic cars. Buyers say that the difference between the registered price and the price at the time of delivery has increased significantly, which has discouraged many families from buying cars. Experts also believe that the increase in factory prices has effectively become an excuse for the growth of prices in the liberalized market, and this cycle is repeated several times in a month.
An unstable market; cars became capital goods
In the days when the market expects price stability, the decline in purchasing power, distrust in price trends, and the lack of a clear outlook have imposed a severe recession on transactions. Exhibitors say that cars have lost their consumer aspect for many applicants and have become capital goods; an issue that has doubled the market’s inflammation. Analysts believe that liberalizing prices without carrying out structural reforms, increasing competition, and growing production will have no result other than transferring inflationary pressure to consumers.
Production costs, import restrictions and structural challenges
According to Seyed Mohammad Hashemi, an expert on the automotive market , the main root of the price increase is not in the liberalization of rates, but in the lack of competition, the inefficiency of the production structure and the heavy costs of automakers. He emphasizes that import restrictions, the increase in the price of raw materials, the growth of foreign exchange costs and the lack of technology are factors that automakers impose directly on the consumer by relying on the liberalization of prices. This is while part of the production costs are due to the heavy and inefficient structure of companies that has not yet been reformed.
Increasing public dissatisfaction with frequent price increases
The continuous increase in car prices has created a wave of dissatisfaction among the people. Consumers say that price liberalization should be accompanied by increased quality, ensuring adequate supply, transparency in pricing, and creating real competition in the market; but in practice, none of these requirements have been met. This has led to increasing demands from regulatory bodies to control the market, examine the performance of automakers, and organize the pricing mechanism.
Market Outlook: Will the Uptrend Stop?
Although automakers hope that price liberalization will reduce losses and develop new products, market experts believe that without increasing supply, strengthening competition, expanding imports, and stricter market supervision, the upward trend in prices will continue. In such a situation, end consumers will suffer the most, and the automotive market will not see stability until fundamental reforms are made.
