Minister Samat’s promise to reduce car prices; Will stability return to the car market?

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Following his repeated promises, once again Minister Samat has spoken about the reduction of car prices in the near future and the return of stability to the country’s car market. but how?

By announcing the removal of all restrictions on lottery plans, the Ministry of Security said that this decision will lead to a decrease in car prices in the market.

November Teter

Read more: Car supply plan in commodity exchange; Order time and conditions

Car price reduction as a result of elimination of lottery

Simultaneously with the improvement of car production circulation by domestic car manufacturers; The Ministry of Industry and Mines has decided to remove the restrictions that previously existed in the framework of the car lottery scheme for the cars that are removed from the lottery. For example, according to the previous regulations, not having an active license plate for 2 years was one of the necessary conditions for registration, or for example, the buyer could not sell his car according to the peace agreement.

Applicants to participate in the lottery were also not able to buy a new car if they had bought a car from a car manufacturer in the last 48 months. But now the spokesperson of the Ministry of Industry has said that these restrictions will be removed for cars that are not included in the lottery. The Ministry of Industry hopes that by removing sales restrictions, more stability will return to the market.

Minister Samat's promise to reduce car prices;  Will stability return to the car market?

According to officials, the advantage of the new decision is that instead of the bulk of the demand being directed to the market and leading to a price increase, it is directed to the purchase from the car manufacturer and can lead to the creation of a competitive atmosphere between the market and the factory, resulting in a drop Free market price.

Of course, it seems that this issue is completely dependent on the increase in circulation of companies or car manufacturers, because only cars that have more supply are supposed to be removed from the lottery process. In addition, if production increases, the market will automatically reach equilibrium and we will see a decrease in car prices.

According to the previous announcement of the Ministry of Industry and automobile companies, currently cars such as Quick with normal gearbox, Quick R, Tara automatic, Tara Desti, Dana Plus Turbocharger, Dana Plus Turbocharger automatic, Saina S, Quick S, Tigo 8 Pro, VM X55 Pro Excellent and VM X55 Pro Excellent Sport are excluded from the lottery. In this way, the applicants to buy these products can buy these cars without restrictions and there is no longer any requirement to comply with some purchase regulations. Yesterday, the spokesperson of the Ministry of Industry said about the new conditions for buying cars:

The removal of these restrictions means that the conditions that previously existed for the purchase of a car will no longer apply to cars that have been removed from the lottery process.

Omid Ghalibaf added:

For example, if someone wants to participate in the lottery, he should not have a license plate in his name, and at the same time, he should not have an active license plate in the last 24 months; While in the new plan, these restrictions have been removed and there are no longer such requirements for cars that are excluded from the lottery.

He continued: “In the past, automobile manufacturing companies had to check the names of buyers after registration, who did not have a license plate with the name of the applicant in the last 2 years, but in the current situation, there is no need for such measures by automobile manufacturing companies.”

In response to a question about the removal of other restrictions on the car lottery, he also said that all restrictions will be removed. In fact, a car that is removed from the lottery process will be sold without any restrictions. He explained:

The previous restrictions were due to the lack of car production, but now car production has increased by car companies and applicants can easily purchase cars.

Referring to the drop in prices in the market, he emphasized: “The price of cars these days is decreasing in the open market”. By implementing two stages of integrated car sales, we saw a reduction in prices in the open market, and this in turn indicates that car sales and lottery can be effective in reducing price inflation.

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