Cancelation of Act of Economics Council is the key of solving problem of pricing cars

According to Khabar Khodro, secretary of Iran Automakers' Association said, "According to explanations in article 1 of act 44 in constitution, car is not a monopoly and it should not be included in pricing issue."

Ahmad Nemat Bakhsh in an interview with Khabar Khodro's reporter told, "According to explanations in article 1 of act 44 in constitution about restriction in auto industry, now there is no restriction in auto industry of Iran so we ask Economics Council to cancel monopoly act of passenger cars in order to help automakers to exit current difficulties."

He said, "According to paragraph 12 of article 1 of act 44 in constitution, monopoly is a condition in market that the share of one or two organizations or manufacturer, buyer and seller from demand and launch in market is in a way that it is possible to determine price or quantity in market or entrance and exit of new organizations to market is limited."

He added, "According to paragraphs 13 and 14 of article 1 of act 44 in constitution, monopoly is in two ways of naturally and legally."

He admitted, "Iran Khodro and Saipa have never prevented entrance of new manufacturers in market as now there are 17 to 18 producers and 21 importers of passenger vehicles in country. Therefore, there is no limitation for import and activities of other automakers in Iran while in other countries in the world there not as many automakers as Iran."

He remarked, "Now Iran Khodro and Saipa as two big automakers in Iran are not trying to prevent other automakers for entering the division. In other words we can say auto making in Iran is monopoly if manufacturers try to prevent registration of new companies or reduce prices as much as individual segment could not compete."

Nemat Bakhsh reiterated, "If we want growth in auto industry and we are willing to export our products to international markets we should cooperate with one of the big automakers in the world but while local automakers could not price their vehicles, foreign companies would not invest here."

He told, "Why importers can price their cars but manufacturers are not allowed to do so despite all difficulties for production? Certainly, such a law is not fair and just."

He admitted that the key of solving problem of pricing cars is in the hands of Economics Council and added, "Economics Council should cancel this act so we ask minister of Industry, Mine and Trade to offer the issue to the council in order to omit cars from monopoly products."