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According to Governments Spokesman, car imports resumed after four years. Ali Bahador Jahromi left a message in his Twitter account: Another promise out of eight promises of President to develop in auto industry was delivered after the cabinet authorized the of resumption of car imports. He stressed that the measure was taken to boost competitiveness and removing monopoly, rationalization of cars’ prices and to meet the shortage of auto manufacturing in the market.
Importation of cars was banned as of June 2018 in line with managing the foreign currency resources after the US exit from JCPOA during Trump presidency and restoration of sanctions as of Summer 2018. At the time, the government took the decision to Economic Coordination Council of the Heads of (Executive, Legislative & Judicial) Powers where it was approved. According to the approval, the ban will be expired by May 21, 2022. Last week, governments Spokesman announced the new plan on resumption of car imports and reviewing it at the Cabinet. Two important incidents took place in between:
The Leader’s dissatisfaction of automakers (for the second time in the recent few months),
Members of Expediency Council expressed their view that the government is entitled to resume car imports.
The two incidents as well as expiration of ban on car imports on May 21, 2002 led the government to approve to resumption of car imports, which will help to resume the normalized previous routine. Analysts believe market should wait to see whether imports will be subjected to exports as a condition or not? Whether government approves any executive bylaw for imports or not?
Many experts believe after lifting the ban, bubble prices in foreign manufactured cars will be broken to at least 50% of their present prices. The domestically manufactures cars will not be spared too, however the fall in price is anticipated to be less. The modality, mechanism and other factors will be subjected to resumption of car imports. If government is going to subject car imports to car exports, as stipulated by the Islamic Consultative Assembly’s ratification, its effects on auto market will be far less.