Transportation Industry: At the Verge of a Fall

Khodrocar – Volvo Trucks officially halted its production in Iran due to the US sanctions. That means Renault Trucks as a subsidiary of Volvo Trucks was forced to cease production as well. Unfortunately that also goes for the rest of other foreign commercial vehicle manufacturers. Therefor now the commercial vehicle market is free only for Chinese to operate.

"Right now the European commercial vehicle producers in Iran are producing their last units with their very last CKD parts left from the final imported parts. It can now be said that Chinese have the market to their own now.” Said Mehdi Niyazi, an expert of commercial vehicle market of Iran, about European operation halt.

"The huge increase of exchange rate is the main problem hitting the commercial vehicle market pretty quick. A 500 million Toman European Truck is now oveeeeeer1 billion Toman. Chinese commercial vehicles’ price tag rose from 350 million Toman to 700 million Toman now. It is impossible for the owners to buy a new commercial truck with such price tag.” Said the expert regarding the circumstances of commercial vehicle market.

"The drivers had no increase in income. There are no goods for transport while in sanctions. So they cannot purchase a new vehicle therefor they go after used commercial trucks instead, commercial vehicle manufacturers cannot sell any vehicle and that is their main problem.” Added Niyazi.

"There is no lack of spare parts now in the market. Manufacturers sell parts from their previous orders. But when they run out of parts in their stocks, providing new parts is going to be a serious problem in near future.” Said Mehdi Niyazi.

"Providing new parts requires passing some very complicated procedures designed by the government to prevent from smuggling goods into the country. The procedures causes over due date shipments and huge increase in final price tags of the parts.” The expert added.

Khodrocar – to save the transportation industry of the country, the government must pay more attention to the renovation of worn out commercial vehicle fleet of the country by subsidize because that seems as the only way to save this industry.

Khodrocar Journalist and Translator: Mostafa Anisi