Following the decisions taken by the Ministry of Industries, Mines & Trade and the ban on importation of passenger cars to the country on the one hand and the withdrawal from the United States from JCPOA which led to the suspension of all activities of leading automotive brands in Iran, since April 2018, price of all imported cars and some Branded brands like Mazda have been dramatically increased.
A 3-fold increasing in the exchange rate over the past 3 months has caused a jump in the price of imported vehicles, where previous economic products ranked as premium vehicles. The stepping up of the price of imported cars was in a way that imported Chinese products were at the pre-owned price of Korean cars, and Koreans and Japanese economic cars entered to the level of premium German and French products. And finally the Ex-Premium products such as MB and BMW went to luxury segment.
In the current situation, news of the liberalization of local manufactured vehicles pricing has put another shock on the market. Because of an oligopoly market behavior for manufactured cars in Iran, according to previous experiences, this SOP will eventually lead to another increase in car sales prices.
With current situation, ban of importation and exchange rate fluctuation, will be major challenges for the Iranian imported car market in coming months. Business owners, product vendors, after-sales service providers, and consumers will be faced with giant problems such as unemployment, reduced customer purchasing power, lack of proper after-sales services, and etc …