Price bubble at the automotive market: 30%

Automobiles have experienced a significant price hike in recent months in Iran. However, experts believe that due to low production costs, domestic automobiles should indeed be priced much lower.

Ghanoon daily writes that Iranian made automobiles not only suffer from dismal build quality, but also are completely unacceptable in terms of safety standards. In spite of all this, in recent times automobiles have come to be seen as investments.

The Head of the Automobile Import Committee believes that the price of imported automobiles suffers from a 20 to 30 percent bubble. The bubble differs based on the automobiles. Vehicles that are more commonly available suffer from a smaller bubble whereas those that are rare experience a larger price bubble. In the case of certain special automobiles which are very rare, there is no specified price and sellers offer the cars at different prices.

Following the ban on the import of foreign automobiles, previous orders which number in the 20 thousands have also been annulled. Importers have requested permission to import these 20 thousand vehicles based on rations.

The import of automobiles was responsible for 25 thousand jobs. The recent ban has caused fears for these jobs becoming redundant and numerous workers have already lost their jobs. The import of automobiles is directly monitored by the Consumer Protection Organization.