Chinese automakers are taking advantage of European’s weakness
Nowadays, Chinese automobiles conquered Iran’s under 1 billion IRR’s automotive market thanks to their car purchase facilities and options.
Khodrocar – Since the early 80’s, the Chinese automakers succeeded to enter Iran’s market in partnership with "Iran Khodro” and "Modiran Khodro”, but few people remember the cars imported by Iran Khodro. Those days, the most famous car among those cars was "MVM 110” which was very similar to "Daewoo Matiz”.
Gradually, the Chinese found their way and the Sanctions created a good situation for their success in Iran.
Researches shows that in the first five months of the year, 1 billion and 554 million 215 thousand and 146 kg of goods imported to Iran from China which worth 4 billion and 566 million 327 dollars.
In the recent years, many automaker companies like Foton, Chery, Changan, JAC, Brilliance, Zotye, Lifan, Dongfeng, BYD, MG, Geely, Great Wall, BAIC, FAW and Haima entered Iran’s automotive market with various and also low quality products.
According to the researches, the main reasons for the success of Chinese companies are: Long term facilities and options.
Hasan Karimi Sanjari, an automotive industry mentioned that collaboration with Chinese companies is like a double-edged sword and told Khodrocar regarding the issue: Fixed prices of Chinese cars are much less than other companies and the reason is cheap human force and low quality production and materials.
He said: Iranian cars platform is getting too old and the Chinese automakers used this to conquer the market.
Karimi Sanjari explained: The other problem is "Money Supply” which the Chinese companies have made a good market in Iran by injecting funds and providing vehicles with up-to-dated options.
It is obvious that by providing long term facilities and good options, Chinese automakers made a good market in Iran and this is while the Iranian automakers are using old platforms.
Researches show that the people don’t have much choice if they want to buy a car under 1 billion IRRs, and they prefer up to dated Chinese cars to Iranian ones with old platforms.
That’s exactly the foreign and European automakers’ weakness in Iran. There is no choice for Iranians if they want to buy a European car under 1 billion IRRs.
Khodrocar Translator: Maziyar Jafarieh
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