News ID : 1698
Publish Date : 23 January 2018 - 09:15
Iran car market is going to take a new shape due to great changes in vehicle import tariffs and import restrictions. The question is how these changes are going to affect the market and who is going to be the winner of this market, the Chinese car makers or domestic car makers?

Khodrocar – Imposing more and more restrictions on vehicle import market such as the ban of import for vehicles with CIF over 40 thousand dollars and increment of vehicle import tariffs was justified by saying that it is to support domestic automobile industry. Such changes have already affected the market by increment in price of those vehicles that are now banned from import and even in their used models.

The effect of such limitations over the economy segment, vehicles below 100 million IRRs will take a bit longer to emerge. The question now is that who take over Iran car market?

"Domestic carmakers and especially those with government support on their back will have the major part of the economy segment of the car market undoubtedly. That is because they have privilege of the best pricing segment of below 50 million IRRs, high volume of demand and production along with infinite level of governmental support on their backs.” Said Babak Sadraei, an automobile industry expert as a prediction of Iran car market in near future.

"On the other hand, Those customers looking for more advance and higher level cars who prefer any other brands over the domestic one, have only the Chinese cars on the table to choose. That is because of the huge gap between domestically produced vehicles with imported ones, caused by increment in vehicle import tariffs.” He added.

Considering the great increment in price of import vehicles and the massive gap that it created with the domestically produced vehicles, it is now only Chinese that can fill up the gap by presenting vehicles which contain a proper package of various positive characteristics such as good level of options, competitive price along with acceptable quality in comparison with domestically produced vehicles. On the other hand the domestic automobile industry lacks the potential to produce a proper and adequate competitor to compete with Chinese cars. Those so called high level European car that are now produced domestically will also face a definite raise in price in connection to alternation of currency.

Therefore next year the car market of Iran is expected to be more under domination of Chinese cars, because with the great difference in price of import vehicles with domestically produced cars and the Chinese cars, it is only Chinese cars that can take over the market share of vehicles under 200 million IRRS.

Khodrocar journalist: Mostafa Anisi

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