Iran's GIO Launches Auto Market Investigation

EghtesadOnline: Following weeks of upheaval in Iran’s auto market when prices hiked hourly, the judiciary-affiliated General Inspection Organization of Iran has started an investigation into the sector.

News ID: ۷۴۷۳۱۲

12 May 2019

Nasser Seraj, the head of the organization, said a report on local carmakers’ activities, market conditions and the role of dealers in the sharp rise in car prices will be prepared in a week, Mehr News Agency reported.

“The report will be handed to judiciary chief, Ebrahim Raisi,” he added.

According to Seraj, legal action will be taken by the judiciary in due course to crack down on malpractices in the auto market, Financial Tribune reported.

The investigation was initiated after car prices jumped above 30% in the past few weeks. Authorities blamed online sales platforms and dealers for the high prices, while market watchers believe economic upheavals have caused volatility in Iran's auto market.

The cheapest vehicle in the Iranian market is SAIPA’s small car named Pride, which is now sold for 550 million rials ($3,520) after a 50-million-rial ($320) hike over the past week.

A sedan model made by Iran Khodro, Samand, is sold for 1 billion rials ($6,410), which was available for 860 million rials ($5,510) a month earlier.

Since the US imposed new sanctions against Iran last summer, car prices, along with the price of every other commodity, have witnessed an uncontrollable rise.

Car production also dropped sharply in the country, as the import of raw materials and auto parts faced increasing restrictions. This is while demand for cars has increased.