Shopping Portfolio or Competitive Market: Which One Is Better for Car Manufacturers?

Khodrocar – There examples about the two or three cars in a same segment made or imported by Iran Khodro and Saipa.

However the point is that, is it a good idea to have several choices in one segment? Is this selling method common between major carmakers or in other countries?

For example, Iran Khodro offered Peugeot 2008 and Renault Capture or Saipa offered Quick, Brilliance, and Sandro with different options and all of them are in a same segment.

Is this an advantage for a company to have several cars in a same segment or not? Is it about completing the people’s shopping portfolio?

Abdollah Babaei, an automotive industry expert, tells Khodrocar regarding the issue: "Having several cars in one segment is not for creating competitive market, it is for fulfilling the companies’ price portfolio. Because there is a possibility that the demand is more than supply in a segment.”

He adds: "Suppliers offer products with same appearances or with the same price range according to market analysis and pricing requirements. This issue just fulfill the price portfolio of companies and is not for creating a competitive market.”

This expert tells Khodrocar about the policy of foreign companies for this issue: "The foreigners are pioneers. There are many examples that a car company offers a new model with different brands in different countries. This issue increases the competition and create new market for a new model.”

Khodrocar - It seems that the two domestic car manufacturers have also taken the course of foreign companies by increasing the diversity of their product portfolio, both in the domestic and in the domestic car market and based on Iran's market demand, they are upgrading the market and supplying various products.


Khodrocar Reporter: Negar MirKarimi
Khodrocar Translator: Maziyar Jafarieh