Imports of passenger cars increased by 68%
Imports of passenger cars increased by 68%; A review of import statistics shows that in the first six months of this year, cars, especially “passenger cars” and “passenger car spare parts”, accounted for the most imports worth $ 837 million.
In the first half of this year, $ 837 million worth of passenger cars entered the country, accounting for 4.1% of the total value share of imports.
During this period, passenger cars (worth $ 837 million), passenger car parts (worth $ 821 million), radar and radio navigation aids (worth $ 539 million), soybeans (worth $ 503 million). And rice (worth $ 476 million) are the top five items imported into the country based on four-digit tariff codes.
According to the report, imports of passenger cars during this period increased by 68% compared to the same period last year; This increase in the value of imports compared to last year occurred while the value of many imported items decreased and the country’s trade balance was reported to be positive at $ 1.4 billion.
It is noteworthy that the value of imports of passenger car spare parts – which has a different tariff code from passenger cars – also increased by 36% compared to the same 6 months last year to $ 821 million and accounted for 4% of total import value. have given.
Borjam, WTO membership and public dissatisfaction with the quality of domestic cars, the three main factors in increasing foreign car imports
In this regard, with “Nasser Beykzadeh Marzbani”, one of the veteran managers of the automotive industry, who in his record activities such as the establishment of an automotive industrial company, deputy director of Iran Khodro, CEO of Iran Khodro Engine Research and Design Company, manager We met with the CEO of Iran Khodro Investment Development Company and the CEO of Isaco.
Regarding the reasons for the increase in foreign car imports to the country, he said: “I think we have come one step closer to reducing tariffs since the issue of Iran’s admission to the World Trade Organization (WTO) was approved as an observer.”
He continued: “One of the main processes for the operation of this membership is to gradually remove tariffs and open the gates to free imports;” If we look at the statistics, we see that the import statistics of foreign cars have increased year by year.
“Beykzadeh Marzbani”, noting that the import tariff on foreign cars is still 40%, said: “However, this number is expected to become smaller year by year in the future.”
“Iran intends to join the World Trade Organization,” he said. “We have applied for membership in this organization for many years, and after a few years, we have been accepted as an observer member;” This means that we can become a member of this organization in two or three years.
Beikzadeh Marzbani added: “These are the green lights through which Iran shows that it is acting in line with import liberalization;” Of course, countries with programs in this field, such as Malaysia, have defined a process and have informed domestic automakers that we will reduce these tariffs in a few years; In this way, they gave domestic automakers the opportunity to become more competitive; If this is done in our country, it will make domestic carmakers think about improving the quality of their products.
He said: “Of course, in the import statistics of the coming years, we should pay attention to the fact that according to recent car partnerships such as Iran Khodro, Peugeot, Saipa and Renault, a series of models of these cars will naturally be produced in the country in the future.” Are counted as domestic production; Thus, the internalization of some of these models may overshadow the import statistics of foreign cars.
Regarding the reasons for the increase in imports, he added: “People’s dissatisfaction with the low quality of domestic cars increases the tendency towards foreign cars;” Meanwhile, the lower the car customs tariff, the more people will welcome foreign brands; Therefore, moving towards membership in the World Trade Organization and the gradual abolition of import tariffs will increase the import of foreign cars.
Beikzadeh Marzbani added: “Of course, in increasing the import of foreign cars, the role of Barjam and facilitating banking relations can not be ignored;” Large European companies, even those that were present in Iran before the escalation of sanctions, left Iran with the escalation of sanctions; Other companies, in response to our request to establish a representative office, stated that “let the negotiations come to an end”; After Borjam, all automakers competed to enter Iran.
The veteran automotive industry manager added: “Facilitating banking relations and monetary exchanges has not been ineffective in increasing foreign car imports in recent months.”
He said: “Increasing the import of foreign cars, in addition to political and economic factors, is the result of a social factor, namely the expansion of the middle class in the country; We see that despite all the government’s policies to collect public liquidity, we see that in the last 20 years, this figure has increased every year compared to the previous year; This means that people have financial resources at their disposal and seek to buy better goods every year.
Beikzadeh Marzbani, in response to a question about the presence of various brands in the country and the results of the presence of these cars in Iran, said: “Except for a few limited countries, other countries are completely free to use different brands; In China, in addition to Chinese cars, all the different brands, including American, European and Asian, are found in abundance.
He continued: 80% of Chinese cars are foreign brands and only 20% are domestic; Of course, most of these automakers, such as Ford, GM, Benz and BMW, are assembled in China, but they are still their own brands. The Chinese people are also interested in foreign cars.
Beikzadeh Marzbani added: “This issue is also observed in Ukraine; Although it is not a rich country and has gone through a war, we see that 90% of cars in this country are non-Russian and are coming from world-renowned brands.
He added: “In more than 90% of the world, the use of foreign brands is common and there are no restrictions; Aside from American automakers, we can open the way for other automakers in the world. As we have seen in the last year, Honda of Japan and new brands of South Korea have come; I have even heard that the entry of Ashkoda from the Czech Republic has been discussed and that Volkswagen’s negotiations with a domestic company are in the final stages; In other words, in our country, except for American cars, other cars can be imported and I predict that all these cars will enter the Iranian market.
The law emphasizes the provision of after-sales service for foreign cars
In response to the question whether in these circumstances it is possible to provide proper after-sales service to car owners? He said: “According to the law, if the car importing company does not have a letter from the original manufacturer stating that they are committed to providing after-sales service for up to 10 years, they will not receive a car import permit.” Therefore, all companies must make a commitment to provide these services in return for imports.
Beikzadeh Marzbani added: “Non-representative importers can only bring cars that have after-sales service centers in Iran; Tehran’s private importers, for example, are more focused on importing Toyota, BMW and Benz because there is after-sales service for these cars in the country; In general, the entry of brands that do not have after-sales service centers in Iran is prohibited.
In response to the question whether all the brands we see in the country have after-sales service centers across the country? He said: This issue also has rules and brands must be represented in Tehran and major cities of the country; For example, some time ago we had negotiations with Volvo and the managers of this car company emphasized that the representatives of Tehran and five big cities of Iran should be introduced to this company.
Beikzadeh Marzbani added: “Therefore, there are appropriate rules for providing after-sales service to foreign cars, and until these cases are not foreseen, that brand will not receive an import license.”
He cited one of the consequences of foreign car imports as foreigners taking over the domestic car market, saying: “In this situation, if imports are liberalized and our domestic carmakers do not move, they will definitely disappear.”
Beikzadeh Marzbani added: “I think the best case scenario is for Iran Khodro to buy Peugeot and Saipa for Renault, and for these two companies to become the production site of the two automakers in the Middle East.”
Increased imports of foreign cars, affected by exchange rate stability and increased domestic demand
“Meysam Rezaei”, the president of the Automobile Importers Association, also said about the reasons for the increase in car imports in recent months: “The increase in car imports in the last 6 months is affected by the stability of the exchange rate and the increase in demand.” Of course, a number of entries in 1995 are related to order registration at the end of 1994.
He continued: “It is noteworthy that some time ago, the president of the union of car repairers announced that most of the people went to the repair shops for domestic cars.” According to “Reza Nikayin”, the president of the union of car repairmen, the number of domestic cars has been three times higher than foreign cars.
Rezaei added: “I think one of the most important reasons for people to pay attention to foreign cars is the comfort and tranquility they have after buying a foreign car;” In other words, some imported cars have passed the test in Iran and have gained the trust and opinion of customers; They have been able to capture a significant market share.
The chairman of the Automobile Importers Association said: “Due to factors such as options, safety, better appearance, high quality and also a reasonable price, the demand for foreign cars has increased and therefore the import of these cars has increased.”
He added: “Another factor in the tendency of people to foreign cars is the lack of cars with technology and the quality of similar foreign cars in domestic production;” As people expect and have the right to drive a safe and tasteful car, some tendencies have shifted to foreign cars.
The import of foreign cars seeks to improve the quality of domestic cars
Rezaei in response to the question of what are the benefits of the presence of foreign cars for the country? He said: car import has caused a shock in the country’s car industry; In recent years, we have seen that domestic automakers have realized the market need for cars with better, higher and more up-to-date options, and have stepped up their efforts not to lose regular customers and try to reach out to global automakers; Whether with assembly or joint contracts and products.
He continued: “This has been one of the most important effects of car imports in the country, because if modern cars were not imported in the country, perhaps it is not far-fetched to say that modern changes in the country’s car industry would not occur and there would be no change.”
The head of the Automobile Importers Association added in this regard: “It should not be forgotten that the welcome of the people of a country to one or more car brands, creates an incentive to invest that brand in the country.”
He said: “When the managers of Renault or Peugeot saw that the Iranian people still welcome their cars, they became interested in investing in our country, and this will cause economic growth in the future;” For this reason, today we are witnessing the expression of interest of large companies such as Hyundai, etc. to invest and participate in our country’s economy.
Rezaei added: “In addition to these factors, now some companies and agencies have provided various conditions for selling their products in order for more people to be able to ride an updated and safer car, and this has made people welcome to buy imported cars.” Is.
He added: “Of course, it goes without saying that some in this market seek to fill their pockets with people’s confidence that by carefully organizing the market, while identifying people who intend to abuse and defraud, people can be assured of shopping with easy conditions for everyone Provided.
The need to review the law banning the import of cars over 2500 cc
Rezaei also in response to a question about what disadvantages the presence of foreign cars brings to the country? He said: “In the current situation, only the arrival of luxury cars is not useful for the country and society, because the Golan of these cars creates a class gap in society, but having a modern car that does not have the shape and brand of luxury and aristocracy is no obstacle to There is no society.
The head of the Automobile Importers Association added: The decision of the Ministry of Industry, Mines and Trade in 2014, followed the removal of vehicles over 2500 cc from the order registration system; In this way, the import of luxury cars was partially stopped, but we see that luxury cars with an engine capacity of less than 2500 cc still enter the streets of the country.
He added: “With an expert decision and using the experience of experts in a working group, it is possible to prevent the import of luxury cars that are below 2500 cc and also the possibility of importing cars that are not luxury have a more favorable standard for the family.”
Rezaei continued: “Another disadvantage of car imports is the weakness of after-sales service; Since these cars have the desired standard and quality, they do not need to go to the repair shop for several years, and this problem can be solved by strengthening the after-sales service networks.
He added: “Of course, it should be noted that the import of low-quality cars into the country, like other low-quality items, will harm not only the family economy but also the country’s economy;” Because it will involve people in repair shops and courts.
Arrival of 30 foreign car brands, minus the Chinese
Rezaei in response to the question of how many foreign car brands will enter the country? He said: “Now, except for Chinese cars, about 30 car models are imported into the country, including cars such as the BMW X4, Chiasrato, Toyota Corolla, Toyota Lexus, Lexus, Hyundai Elantra, Camry Hybrid, Kia.” Optima, Kia Sportage, Kia Sorento, Toyota Raufur, Hyundai Tucson, Hyundai Santa Fe, Toyota Hilux, Toyota Yaris, BMW WX3, Renault Duster, Renault Safran, Renault Fluence, Accent, Audi, BMW 528i, Carlo XC90, Toyota Hilux two-cab pickup, BMW i8 Hybrid, Benz E250 mentioned.
The head of the Automobile Importers Association continued in response to the question, “Is it common in other countries that many brands enter the market of one country?” “In most countries, the entry of various brands is free because the tastes and expectations of the people are not the same; While in a country, perhaps the variety of products of one brand or several brands meets the tastes of the people of that country; In fact, it is not only the brand that is the measure, but also the variety of products; Now there can be diversity in one brand and if not there will be a search in other brands.
He said: in the field of competition, the more competitors there are, the better for the people; Because competitors try to attract more customers by raising the standards and quality of their products and reducing prices, and always monopoly and lack of competitors everywhere and in all categories will cause corruption; The lack of a competitor in the car can also lead to a lack of car quality and increase in price, both of which are to the benefit of the consumer.
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