During the last 10 years, the Chinese carmakers had a major growth and they were able to enter the global markets. Now considering the new sanctions, there is a possibility that the Chinese leave the Iran’s car market.
Khodrocar – Although China has the greatest car market in the world, most of famous carmakers are concentrated on United States market and the Chinese themselves, are trying to enter this beneficial market.
However, when United States left the Iran’s Nuclear Deal (JCPOA), many companies which came to Iran with a lot of hope, started to say goodbye and they are going to leave Iran. European and Asian brands in Iran due to joint ventures with American companies under the influence of sanctions will have to leave Iran; otherwise, they will lose the North American market.
As soon as the Chinese relation with American carmakers and market got stronger, the sanctions will threaten them even more than the past and now Donald Trump threatens them directly. Also, the Chinese have gone through the gates of Unite States’ car market by entering the International Automobile Exhibitions and they are not willing to burn this excellent opportunity with a mistake.
Will Chinese continue their activity in Iran, considering the sanctions and joint ventures with American companies?
Farbod Zaveh, an automotive industry expert told Khodrocar: "There is a possibility that the Chinese will exit the Iran’s market because they have American partners and in many global markets, including the Chinese market, they trade in dollar. So, if the foreign partners put pressure on them, they will face many problems and maybe they will have to cut the relationships with Iran.”
He continues: "Chinese roll on our automotive industry is not important and it is limited to assembly but their exit will affect our market because they produce 150 thousand vehicles per year in Iran.”
Mehrdad Mansouri, member of board of directors of Vehicle Importers Association have the same idea regarding the issue and says: "If Chinese leave Iran, it means that 60 percent of our automakers will be destroyed.”
Khodrocar - Undoubtedly, the volume of investment has been made by Chinese and the market share they obtained from the car market of Iran does not allow the Chinese to quit Iran’s market easily. The effect of sanctions on Chinese carmakers needs more time to be determined and only the time shows the results.
Khodrocar Reporter: Mostafa Anisi
Khodrocar Translator: Maziyar Jafarieh
Khodrocar - Undoubtedly, the volume of investment has been made by Chinese and the market share they obtained from the car market of Iran does not allow the Chinese to quit Iran’s market easily. The effect of sanctions on Chinese carmakers needs more time to be determined and only the time shows the results.
Khodrocar Reporter: Mostafa Anisi
Khodrocar Translator: Maziyar Jafarieh
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