Car price bubble getting larger in Iran day and day

According to The Iran Project, the prices in the car market are surging and every day the news about spikes in the price of these capital goods is heard in every corner.

In a series of acts of blaming, Iran's Parliament blames the situation on the government, the government blames it on the commodity exchange, and the people blame it on the weak management of the officials.

In Today's report (January 31, 2024) about the prices of all types of domestic cars, Khabar Online declared that the market trend of this product is still rising.

What is the reason behind not importing second-hand cars?

Recently, Lotfollah Siahkali, an Iranian lawmaker, said that the car market is out of balance, adding, "The car price was decreasing, but due to the government's lack of cooperation, the price of the car has gone up to the point where the car price bubble has formed.

The amount of the country's demand for cars is clear, but the production is much less than the demand. This lack of harmony between supply and demand led to the creation of the black market, rent, brokerage, and mafia in the car market, the legislative stated.

The law of organizing the car market was implemented, but the import of new cars was slow because the government could not provide the required currency.

Offering cars in the stock market made it more expensive

Earlier, some government officials had announced that the reason behind the high price of cars is the commodity exchange.

However, the investigations show that not only the mechanism of the stock exchange was not the cause of the price increase, but also the price of these cars in the open market decreased when the cars were offered on the stock market.

Lack of supply, excess of demand

The lack of car supply by the manufacturers is one of the factors that has always been considered as one of the influential reasons behind the surge in car prices.

The impact of nearing Persian New Year

Some experts considered the spike in the price of cars in the last months of the year as regular. They believe that the prices in the car market undergo changes every year as the New Year approaches.

According to The Iran Project report, many factors could be involved in the high price of cars including mismanagement, rent, low supply of cars in the market, dollar rate fluctuations, command pricing, and car import ban.

The above factors join hand in hand to create turmoils in the market and face constant fluctuations.

Translator : Fatemeh Khoshroo