Increase in Car Prices Approved by First Vice President; Automakers Secured Aref's Agreement

A Tehran-based newspaper reported that Mohammad Reza Aref, the First Vice President, is collaborating with automakers to increase car prices in the coming days. The newspaper 'Donya-e-Eqtesad' stated in its issue on Tuesday, September 26, that the report and request for a price increase from the managers of two major car manufacturing companies had been sent to the office of the 'First Vice President of the President' and was discussed in the cabinet with Aref's approval, leading to an imminent adjustment of car prices. Donya-e-Eqtesad emphasized that the Organization for Consumer and Producer Protection has determined the new car prices, which will be implemented with government approval. According to reports, this organization had extracted the new prices for domestic cars during the thirteenth government, but the then-government did not issue a permit for their implementation and price increase. Experts believe that the increase in car prices will occur while, as in previous years, we will not only not witness an increase in the quality of domestically produced cars but also a decline in quality. Most experts believe that this trend is due to the absolute monopoly in the car market, and in fact, automakers are indirectly subsidizing their operations from household budgets. This approach seems to have at least a serious opposition within the government. Accordingly, Abdolnaser Hemmati, the Minister of Economy, stated in a message posted on the social media platform X: 'Everyone should know that we will not allow monopoly in any field or industry.' Hemmati emphasized that 'all industries must compete with their foreign rivals.' These statements from Hemmati came after the cabinet agreed to allocate one billion dollars for car imports this year to 'resolve the car import issue.' Some experts have labeled Hemmati's remarks as 'populism,' arguing that the government can only talk about fostering competition when it reduces tariffs on foreign car imports and sells them at real market prices in Iran. According to experts, high tariffs and heavy customs duties prevent the formation of competition between domestic products and imported goods, only slightly reducing the bargaining power of automakers. The low quality of cars, very high prices, lack of safety and standards, and the pollution caused by domestically produced products are among the issues that experts criticize. The First Vice President emphasized 'fuel changes,' the Minister of Economy expressed his opposition; a record daily consumption of 140 million liters of gasoline was recorded, and the energy imbalance in Iran intensified. The liberalization of 'car imports' by private individuals has left hundreds of applicants waiting for 'car delivery' from companies. A police official reported the 'hoarding' of more than 26,000 cars in 'unofficial' parking lots by automakers. A newspaper report indicated the government's failure to follow through; the import of used cars has been canceled.