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Mandatory Pricing Fuels Chaos and Lack of Transparency in Iran’s Automotive Sector

Mandatory Pricing Fuels Chaos and Lack of Transparency in Iran’s Automotive Sector

Parts manufacturers now claim approximately 310 trillion Tomans in outstanding debts. Previously, they stated this figure as 200 trillion Tomans. This significant increase highlights a severe lack of transparency within the industry.

According to Jaddeh Makhsoos news agency, Behzad Khosravi, speaking to IRIB News Agency, stated that mandatory pricing harms not only the parts and automotive industries but also other sectors. He emphasized that without a comprehensive plan and sufficient transparency in both laws, policies, and supply-demand dynamics, this ongoing chaos will persist.

Khosravi also pointed to the accumulated losses of automakers and parts manufacturers. He clarified that these losses do not solely stem from mandatory pricing.

Over the past three decades, automotive industry managers have changed every two years on average. They have imposed thousands of unqualified personnel at various levels within these organizations. This practice contradicts the cost-benefit principle. Each management team has transferred its problems to the next without proper accountability.

Jaddeh Makhsoos reports, this economic expert explained that governments use mandatory pricing to control inflation. However, this approach has failed to curb inflation. Instead, it has fostered speculation and corruption.