Iran Economy in Brief – No. 21

Decision made: car prices will increase
After two years, Automobile manufacturers are allowed to increase their prices. Iran Khodro Co. can increase its prices by 1.81% and SAIPA by 0.4%. The difference is due to the different quality of products. This results to an increase between €15 to €215, depending on the car model.
Automobile industry in Iran is monopolistic and prices are not regulated by the market, but by the big players.
High import tax tariffs on the other hand leave out any serious competition in the market. Altogether prices and qualities of Iranian cars do not seem to be compatible. But Game may change as soon as foreign companies can enter the Iranian market.

Post and Mobile Operator to collaborate
Post Company of Iran and Rightel, the third mobile operator in the country, will start join ventures in the area of IT and Post services.
Post company of Iran has a database of 45.3 million ZIP codes and is ready to share it with the ITC company Rightel.
With the growing trend of data analysis such information could help both companies to improve their services and create new business opportunities such as advertisement. It could well be possible that Rightel will exclusively become the partner for Post company to provide IT and mobile services for the company employees and branches. Post offices could also become sales representatives for Rightel.

Priorities in Industrial Sector
Deputy President, Mr. Jahangiry, in a missive letter to the Ministry of Industry, Mine and Trade, announced the first seven priorities for the country for the current year.
According to this letter, clarifying the situation of 7.500 semi-active manufacturers and getting them back to operation has the highest priority.
During the sanctions, limited access to good quality of raw materials hurt many Iranian industries. Now after lifting the sanctions, refreshing the Steel and Copper industries is the second priority of the Ministry of Industry of Iran.
Supporting small and medium-sized businesses to become export-oriented is the third priority.