Iran Streamlines Car Registration with New Market Regulation Update
In a move aimed at enhancing market efficiency and consumer experience, Iran’s Competition Council has announced significant updates to the regulatory framework governing the passenger vehicle market. The revisions focus primarily on procedural execution while firmly maintaining the core pricing mechanism established under Guideline 543.
Core Principles Remain Unchanged
The foundational policy of cost-plus pricing, where a vehicle’s final price is determined by its production cost plus a reasonable profit margin, remains intact. This ensures continued stability and predictability in the market’s pricing structure, a key pillar of the government’s economic oversight.
Key Changes for Consumers and Manufacturers
A major consumer-facing change is the elimination of the mandatory fund-blocking requirement for vehicle registration. This procedural shift is expected to simplify the purchase process for citizens.
Furthermore, the updated directive places a stronger emphasis on competitiveness benchmarks. The Ministry of Industry, Mine and Trade (MIMT) is now tasked with monitoring the prices of comparable foreign vehicles. Notably, the directive stipulates that if the price of a domestic or assembled vehicle is not in alignment with the official pricing table and is higher than that of its foreign counterparts, a price increase will not be permitted.
A Streamlined Pricing Process
The new regulations also clarify the pricing approval workflow. Automakers will submit their proposed prices to the Support Organization based on their financial documents. Acting as the specialized pricing authority, the Support Organization will then have a one-month window to calculate and officially announce the approved price on the Saman 124 system.
According to the Competition Council’s resolution, the publication of a price on this platform constitutes its official notification, creating a transparent and centralized source of information for all market participants.