Prices of Some Domestic Cars Reach Billion-Toman Mark

Following the issuance of a permit for a price increase of over 30% for domestic cars, the trend of rising prices in the car market has intensified, and according to reports, the prices of some cars have reached the billion-toman mark. The Khabar Online website reported that 'the price of the Dena Plus Automatic Turbo Optional model 1403 has reached 1 billion and 30 million tomans after a 25 million toman increase.' This news website also announced that the automatic Tara model has reached 1 billion and 10 million tomans, while the Tara Automatic is now priced at 925 million tomans. New price notifications were published on November 19, indicating that the prices of products from Iran Khodro and Saipa have increased by more than 200 million tomans. Experts believe that in the next six months, due to the rise in the general price level of production inputs, further price increases will occur. Market participants believe that this price increase is a precursor to future increases and that the official rise in car prices will not end here. In this regard, the 'Donya-e-Eqtesad' newspaper also reported on November 18 that 'the Secretary of the Automobile Manufacturers Association has sent a letter to the First Vice President, requesting a 70 to 80 percent increase in the prices of domestic cars.' 'Donya-e-Eqtesad' stated that 'automakers do not accept the 30% price increase and are, in a sense, being greedy and seeking heavier permits.' Analysts also indicate that signs of further increases in car prices are linked to rising raw material costs for production. The latest report on car production costs in the country shows that the average rate of production inputs has increased by 38% this year compared to the first half of last year. Statistics indicate that taking the first half of 2022 as a baseline, the rate of production inputs for cars has experienced an 86% increase. The monopolistic nature of the car market and the imposition of 100% tariffs on imports, along with the ban on imports, have allowed automakers to have a safe margin for production and sales at any price and quality.