Chinese: Next Year's Winner of Iran Car Market
Khodrocar – Imposing more and more restrictions on
vehicle import market such as the ban of import for vehicles with CIF over 40
thousand dollars and increment of vehicle import tariffs was justified by saying
that it is to support domestic automobile industry. Such changes have already
affected the market by increment in price of those vehicles that are now banned
from import and even in their used models.
The effect of such limitations over the economy
segment, vehicles below 100 million IRRs will take a bit longer to emerge. The question
now is that who take over Iran car market?
"Domestic carmakers and especially those with
government support on their back will have the major part of the economy
segment of the car market undoubtedly. That is because they have privilege of
the best pricing segment of below 50 million IRRs, high volume of demand and
production along with infinite level of governmental support on their backs.”
Said Babak Sadraei, an automobile industry expert as a prediction of Iran car
market in near future.
"On the other hand, Those customers looking for more
advance and higher level cars who prefer any other brands over the domestic
one, have only the Chinese cars on the table to choose. That is because of the
huge gap between domestically produced vehicles with imported ones, caused by increment
in vehicle import tariffs.” He added.
Considering the great increment in price of import
vehicles and the massive gap that it created with the domestically produced
vehicles, it is now only Chinese that can fill up the gap by presenting
vehicles which contain a proper package of various positive characteristics
such as good level of options, competitive price along with acceptable quality
in comparison with domestically produced vehicles. On the other hand the
domestic automobile industry lacks the potential to produce a proper and
adequate competitor to compete with Chinese cars. Those so called high level
European car that are now produced domestically will also face a definite raise
in price in connection to alternation of currency.
Therefore next year the car market of Iran is expected
to be more under domination of Chinese cars, because with the great difference
in price of import vehicles with domestically produced cars and the Chinese cars,
it is only Chinese cars that can take over the market share of vehicles under
200 million IRRS.
Khodrocar journalist: Mostafa Anisi
