The first reason: the industries involved in the automotive industry rely on the price of the dollar.

The beginning of the automotive industry is from parts manufacturing. It does not matter if the car company supplies its required parts from domestic parts manufacturers or refers to parts importers. However, this cycle leads to the dollar and the price of the dollar will affect it. Undoubtedly, no car company in the world can produce all the required parts itself. Therefore, it should enter into negotiations with the manufacturers or importers of parts and sign contracts with them.

The important point here is that parts manufacturers do not supply all raw materials from within the country. These companies need materials such as iron, polymer and petrochemical products, copper, etc., and to supply some of them, they must cooperate with foreign companies. For this reason, the price of raw materials changes in proportion to the exchange rate and will ultimately affect the overall price of the produced part. The task of importing companies is also clear. These companies trade in dollars. Thus, the price of currency affects the cost of imports, and eventually the parts become more expensive or cheaper than before in the hands of automakers.

The second reason: the automakers' abuse of the dollar price increase.

Undoubtedly, a rise in the price of the dollar for a week or two will not affect the current production of automakers. But why does this increase the price of domestic cars on a daily and sometimes momentary basis? This phenomenon is known in the world of economics as price stickiness. A phenomenon in which car prices rise suddenly and for a long time, and prices remain stable for only a short time. In fact, in such cases, carmakers know that the current price increase can affect their subsequent purchases and possibly raise the price of the car. As a result, before they can even raise prices, they can do it themselves and raise prices abruptly.

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The third reason: car manufacturers are not the only ones involved in supplying parts and thus determining car prices.

Fluctuations in the price of domestic cars are not only related to the rise in prices of parts or raw materials or changes in the price of currency. The parts or raw materials that are imported first enter the customs and the companies have to clear them through customs. Customs determines the customs clearance rate in proportion to the exchange rate and the value of the goods. Therefore, any product that has a higher price will have a higher customs cost. So parts manufacturers or importers raise their prices due to paying more for the clearance of goods.

In some cases, the importing company may not settle with the customs in time and the goods remain in customs for a long time. At this time, the exchange rate may rise and the national currency may depreciate. As a result, money has been deposited in customs, and eventually goods reach consumers at a higher price than they should.

Another institution influencing the pricing of domestic cars is the Central Bank. If this institution does not have the necessary cooperation with automakers and parts manufacturers, exchange rate fluctuations will have a greater impact on prices. Domestic laws can also be considered as another factor influencing prices. In fact, these rules are what make carmakers unable to set car prices commensurate with the parts they buy.

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