Financial Tribune - Iranian carmakers have been barred from holding presales until they meet their overdue commitments and deliver orders placed earlier by customers, a deputy industries minister says.

Abbas Tabesh, who also heads Iran Consumer and Producer Protection Organization, also told ISNA, “Iranian carmakers have been prohibited from introducing new presale schemes until they deliver cars that were sold months ago.”

Over the past 12 months, the car production rate has been on a downward trajectory in Iran, as the output of major manufacturers, Iran Khodro (IKCO) and SAIPA, continues to plunge.

The sharp decline in supply has derailed the market. In a push to bring some calm to the chaotic market, with support from the government of President Hassan Rouhani, IKCO and SAIPA introduced extended presales through which they registered orders for over 1 million orders with advance payments.