Increasing cars prices is imminent

According to Khabar Khodro, the secretary of Iran Automakers' Association confirmed that increasing cars' prices in this year is imminent and said, "Considering price increase of effective factors in vehicles' production it is expected that we would have 10 percent increase in cars' prices for this year."

Ahmad Nemat Bakhsh in an interview with Khabar Khodro's reporter told, "Despite reports in media, at the meeting of managers of Saipa and Iran Khodro with members of Commission of Industries and Mines in Parliament, there were no talks about consolidation of cars prices for this year."

He added, "Considering price increase of effective costs in production, increasing cars' prices is inevitable so the request of increasing prices would be sent to Council on Competitiveness soon and it is expected that the council will announce the license of increasing cars' prices to automakers."

He admitted, "While form last year until now there were more than 10 percent increase in exchange rate and added value that parliament has announced has increased 1 percent, a 30 million toman vehicle would see 300000 toman price increase."

He mentioned to the 17 percent increase in income of workers and remarked, "Naturally, this would affect production costs too and it would result in increasing price of cars. In addition, Parliament has increased the price of water, power and gas that are among current fees of companies."

About some statements on the effect of nuclear agreements on price of cars, he reiterated, "Applying those agreements would last until Tir and with finalizing agreements and the possibility to open account the cost of transferring exchange would be reduced for automakers, which naturally would result in reducing the growth of cars prices."

Finally, he explained, "If the inflation rate was negative it was logical to expect decrease in cars prices but with 15 percent inflation rate in country we would not have any reduction or consolidation in cars' prices for this year."