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!?️What direction will the automotive market and industry take in the coming…

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Original report: Mehr News AgencyEditorial policy

Mehr News Agency

⁉️What direction will the automotive market and industry take in the coming months? 🔻Automakers in a dilemma; buyers in hell 🔹Today, Iran's automotive industry is at a point where, besides conventional economic and policy variables, it is affected by international developments and geopolitical tensions: ▫️Maritime blockade and attacks on southern ports (disruption in the import of parts and raw materials) ▫️Transportation restrictions through land routes and northern borders ▫️Bombardment of the automotive supply chain (petrochemicals, steel, and aluminum factories) ▫️Uncertain fate of the war ▫️Capital flight to safer markets ⬅️Result: Forecasting and planning become impossible ⚠️The unification of the exchange rate, irrespective of the war, has at least doubled production costs compared to the same period last year, but automakers are not allowed to transfer costs to the final price due to price suppression policies. 🔹Today, automakers face three different possible scenarios: 1⃣Escalation of tensions: production halt 2⃣Continuation of the neither war nor peace situation: further increase in production costs 3⃣End of the war: slight decrease in exchange rates and inflation expectations ⁉️In what direction will the market and buyers go? ✅The automobile becomes an investment commodity and a common currency ✅Transactions decrease ✅Car prices are determined based on the value of the dollar 🔗The mentioned factors will lead to other consequences such as increasing the gap between official and market prices, the transformation of cars into luxury goods, the expansion of installment and leasing sales, as well as a decrease in effective demand (demand accompanied by purchasing power). Noting that the end of the war, escalation of tensions, or continuation of the current prolonged situation will amplify potential events.

Article: !?️What direction will the automotive market and…

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