News ID : 1465
Publish Date : 26 December 2017 - 09:15
Exchange tensions continues and it is not going to leave the manufacturing industries. It seems that these tensions will continue during the next year.
Khodrocar - The country's manufacturing industries need a fixed exchange rate because of their dependence on imported raw materials. Every tension in exchange rate causes the increment of final prices and products.

Meanwhile, it is clear that exchange rate fluctuations lead to the increase of final prices. Automotive and part manufacturing industries are not exceptions, because the part manufacturers supply their needs in two ways: Imports and domestic productions.

Ahmad Nematbakhsh, Secretary of Iran’s Vehicle Manufacturers Association told Khodrocar regarding the issue: "Financial losses of part manufacturers depends on exchange rate fluctuations. If the raw materials are purchased at trading exchange rate, they will not be harmed but free exchange rate will cause losses.”

He stated that in order to have a single exchange rate, most transactions are done with free exchange rate.

He mentioned the dependence of vehicles’ final price on exchange rate fluctuations and said: "Exchange rate fluctuations depends on government decisions.” 

Answering to the question about the increase of vehicle import tariffs, Secretary of Iran Vehicle Manufacturers Association emphasized: "Nobody asked our opinion about the tariff increments in the new budget bill. We disagree that the vehicles with over 2500cc engine displacements, are luxury. It is not a right measure. Luxury and non-luxury vehicles must be defined due to their prices, not their engine displacements.

According to him, during the first four months of this year, the volume of imports increased compared to last year then the government shut down the vehicle import registration website to stop it. During this period, more than 50,000 cars were purchased, equivalent to one billion and 400 million IRRs. It is logical that the government wanted to stop the currency evacuation.

Nematbakhsh emphasized: "First the exchange rate of the next year should be declared in order to comment on the finished product price.”


Khodrocar reporter: Negar MirKarimi
Khodrocar translator: Maziyar Jafarieh
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