Iran’s Market; Great Chance for Chinese Automakers

Khodrocar – Since USA exit the JCPOA, European companies feared of their future relation with this country and decided to leave Iran. Peugeot-Citroen and Volkswagen are the first companies to exit Iran’s market.

Now, Chinese companies have good share of Iran’s market and Mahindra announced to enter Iran’s market last year but has not said anything yet. Indian auto industry is one of the biggest industries of this country and it has 7.1 share of its domestic production. On the other side, Chinese companies have good financial resources and they are developing with amazing peace. For instance, Geely has bought part of Daimler’s share.  

"The current condition is a golden time for Chinese and it doesn’t seem that they like to leave Iran. Automakers will have the highest rate of benefit when they produce lower parts. Highest domestic production is forcing them to have more cooperation with local part makers and take the risk of it. On the other side, the government announced to give currency to CKD. By considering the current condition and ban of importing vehicle, this would be the best chance for Chinese to import their vehicles as CKD and have more share of the market.” Amir Hosein Kakaei, auto industry expert told Khodrocar reporter.

"The vision of Chinese auto makers is different from other countries. They won’t consider any of bad conditions in Iran such as economic problems and continue to distribute their cars with low prices. These kinds of things and installment sales of cars show that they have a long term program for Iran’s market.” He added

"I believe, Chinese will take a big advantage from Iran’s market. Their car’s quality has been improved a lot during the recent years and we could be hopeful for cooperating with them. Another financial program of these companies is part making. They produce they part to need repair very soon therefore they will have advantage from the repairment and selling parts.” He said.

"Indian automakers are so powerful in their own country but their vision is too different with Chinese companies and have a close relation with American automakers.” Kakaei told Khodrocar. "As they are cooperating with American it’s possible that they would leave Iran.”

It seems that Iran’s market is safe and secure for Chinese, also Indian can enter easily. Right now, they are considering top and down of the market and we have to see what will they decide about Iran.

Khodrocar Reporter: Maziyar Jafarie

Khodrocar Translator: Amin Zamani