KhodroCar - It is now long passed the deduction in automobile industry investments and the question remains: What are the consequences of deduction in number of foreign investors in Iran’s automobile industry? Absorbing investments this big, required multi-layer infrastructures. Therefore domestic producers are all looking forward to provide all the needs, not only to present their good in global market but also to get rid of all Chinese in the domestic market.
Chinese are so proud of their automotive outcomes and also in export. They have targeted Iran as their export market, reaching out Iranian buyers with their cheaply priced cars, more and more every day.
Now the question pups in mind: What happens to the market shares of domestic car makers and those from joint ventures? What are the consequences of decrease in number of real investors in Iran car market along with increase in number of Chinese cars in the market? How can we save our domestic car market from the Chinese?
Some experts believe that the absence of proper trade atmosphere and some blockage from the government are of the main reasons why the automobile industry is experiencing decrease in number of investors.
Some other automotive experts believe that sudden and drastic decisions of the government such as shutting down and reopening of vehicle import registration website, increment of vehicle import tariffs and so on, causes the increase in Chinese’s self-confidence to enter Iran car market.
"It is probable that Chinese and French make their best out of the situation, the decrease in number of investor and later it leads the market to be filled with Chinese cars. Such situation might lead to production of some Chinese cars that not even they would buy. There must be some other ways to fill this vacuum but the government always prefer to play it the hard way and not let anybody get involved.” Said Farbod Zave, an automobile industry expert to KhodroCar journalist.
The expert believes the rules always change all of a sudden and that is because one party of each of these contracts is the government. That’s why foreign investors are afraid to sign a contract with private sector because they believe that the automotive activities are always changing, decreasing their power to take risks.
"Assembly lines of passenger cars do not bring much benefit to the economy. If there is anything going to happen for foreign investors, it must be the way that car makers and auto part makers become activated with high volume production at the same time.” Said Zave in response to the question that would it be beneficial if Chinese launch an assembly production line.
Although the automobile industry of Iran looks active these days but yet after three foreign contracts, the industry awaits investors. It is now only the matter of time that the consequences of the shortage in automobile industry investments to show off.
KhodroCar Journalist: Negar Mirkarimi
KhodroCar Translator: Mostafa Anisi