Iranian Workers' Wages Crushed Under Chinese Cars; Car Imports Fail to Curb Prices

Car imports have been on the rise, and experts have long said that the idea that foreign cars will improve the market is a sweet dream that will turn into a nightmare.

According to Ambassador Arjan, the studies of the Majlis Research Center on the car market in 1404 have stated the contribution of the main players in this way.

Although the share of imported cars in the market is not very high, the report of the Majlis Research Center shows that a part of foreign exchange consumption in the car industry is dedicated to the import of parts for the production and assembly of cars inside the country. Therefore, dependence on foreign cars is still noticeable.

In recent years, many supporters and opponents of car imports have seen it as an opportunity to diversify the market and create a competitive environment, to encourage domestic production to improve the quality of cars, and also to boost the market due to meeting the needs of a group of buyers. But breaking the borders for the entry of foreign cars is also accompanied by opposition. Opponents often focus on behind the scenes and long-term effects. The withdrawal of foreign currency from the country and its effect on increasing the exchange rate, remaining dependent on foreign production, not affecting the quality of domestic production and disrupting the peace of the domestic market.

Ambassador Arjan's investigations show that in practice the predictions of experts who were against car imports as the only solution to improving the market are closer to reality.

We encountered a deviation in the price of foreign cars other than Chinese

Statistical data published by the Iranian Customs Organization show that about 25,000 cars entered the country in the first five months of the year. The total weight of these cars is about 44 thousand tons and their value has reached 693 million dollars. If we compare these numbers with the statistical data of the previous year, it indicates the growth of the car import flow. In the five months of last year, about 19,000 vehicles with a weight of about 30,000 tons and a value of nearly 416 million dollars had entered the country. Therefore, the import of cars this year has grown both in terms of number and weight and value.

In response to the question of whether car imports are able to adjust the prices in the market or not, the international economy expert answered. He told Ambassador Arjan: We have two markets in Iran, one is a domestic car, the price of which is real. But imported cars that are rarely imported, such as some models of Benz and Toyota Land Cruiser, have strange prices. In fact, the origin of the Russian and Chinese market is almost the real price, but other cars have deviated. For this reason, no matter how many Chinese cars we import, it has no effect on the price of non-Chinese cars. Keep in mind that we usually calculate prices in Rials, but the price of a product that can be moved should be calculated in dollars. A Toyota Corolla is $18,000. 260 thousand tomans should be 4 billion 680 tomans. And don't expect the price to be much lower than this figure.

Usually, we calculate the prices in Rials, but the price of a product that can be moved should be calculated in dollars. A Toyota Corolla is $18,000. 260 thousand tomans should be 4 billion 680 tomans. And don't expect the price to be much lower than this figure

Barzin Jafartash regarding the effect of car imports in creating a competitive environment that benefits the consumer added: to some extent, the effect can be felt. Chinese cars are the cheapest cars in the world, and in a situation where the purchasing power of Iranians has decreased, a number of people who like to buy foreign cars were able to buy Chinese cars, but there is an important issue; Every car you import and the country's currency is taken out, the country's economy suffers and the exchange rate goes up. When we have more imports than foreign exchange earnings, the price of the dollar increases.

He added: Importing foreign cars has not had any effect on the quality of domestic cars. In the situation where we are under sanctions and the foreign exchange income is reduced, we should use this income better.

Now is the best time to limit the assembly of internal works to 50% internalization. That is, they will not be able to assemble until 50% of a car has been domesticated, and we will focus on Iran Khodro and Saipa, and instead of price pressure, quality pressure will be applied. For example, making engines with less gasoline consumption and reducing car breakdowns

Is the customer Chinese-friendly or Iranian-friendly?

Now that foreign cars are in the market and it seems that the interest in luxury cars is still serious among the young Iranian generation, do customers prefer to buy Iranian or Chinese cars?

One of the car dealers said in this regard: Imported cars dominate the Chinese car market. Although it has a much lower quality compared to western cars, it is welcomed in Iran because it is cheaper. But if we compare with Iranian cars, we recommend Chinese cars to our customers. Because it has more options.

He added: For example, if a customer wants to spend 3 billion to buy a car, and at this price he can buy an Iranian car or a Chinese car, he usually prefers a Chinese car, which is both more stylish and of better quality, and is considered a foreign car.

This seller says: The customer can bring any car he wants from abroad and clear it at customs, but usually foreign cars are imported by dealers and there doesn't seem to be any limit on the type of car to order. That is, if the customer has the financial ability, he can also order a current model car.

Regarding the market situation, he said: "Unfortunately, the car market, especially after the war, has been accompanied by many fluctuations and it has gone into a coma frequently, and many people have suffered." In the current situation, the people's priority is the serious needs of life, and if the question of investing in a car is not an issue for some people and they have limited financial power, they will not buy it, and with the daily increase in the car price, the market is almost asleep.

The car market, especially after the war, has been accompanied by many fluctuations and has repeatedly gone into a coma, and many people have suffered.

After-sales service is pickpocketing or service?

Even though the car shows have become popular and they tempt young people to buy with new advertising methods in the virtual space, foreigners face another problem. After sales service.

Another car dealer says: Usually, the companies that import cars also import its parts and have some kind of after-sales service, but the number of these parts is high.

He added: The price of parts has increased even in domestic cars, and in imported cars, it can only be afforded by customers with high financial capacity.

When you walk in the car market, there is everything from a chicken to a man's life. Foreign cars tempt people's ears to buy with their flashing lights and exhaust sound, but the fact is that this dependence shows the weakness of domestic production. That too, in a situation where if the domestic car manufacturer comes to its senses and thinks about quality, the same currency used for imports can fill the pockets of Iranian workers. Why do you think the car dispute in Iran is not over and there is no will to fundamentally solve it?