(Persia Digest) – The Iranian automotive industry has seen prices go through the roof over the past year in an unprecedented, unruly manner.

As from May last year, simultaneously with the US withdrawal from the 2015 JCPOA nuclear deal and rising dollar prices on the forex market, fluctuations in the automotive industry also began and prices began to rise on a daily basis.

At the time, the two main car makers in Iran, Iran Khodro and Saipa, blamed this on sanctions, a lack of spare parts, and dollar price rises on the forex.

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Although no changes have occurred in the above instances, price rises for all types of cars have been unmatched.

For instance, Peugeot 2016 type 2 which sold for 72MM tomans (USD 5150) on 7 April 2019 was going for 95MM tomans (USD6800) on 28 April 2019. Saipa 111 which is the cheapest car manufactured in Iran is now selling for 51MM tomans (USD 3650). Among imported cars, the example of Toyota Land Cruiser Prado is a good one as it cost 180MM tomans (USD 12,900) five years ago; but today, the same used car is worth more than 1BN and 400MM tomans (USD 100 thousand).

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According to some car dealerships, prices are going up every hour now and it is impossible to price a car for buyers.

Some believe that car prices in Iran also affect prices for other commodities, leading to hopelessness for the people. Therefore, the government must come up with an urgent way out of this mishmash.

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