News ID : 3590
Publish Date : 05 April 2019 - 10:39
Iran’s car market was a profitable place for foreign partners before sanctions because they increased their partnership and tried to start joint venture production lines in Iran. Now the question is what is their market in Iran after the new sanctions and suspension of their activity with local producers?
Khodrocar – Iran counts as a perfect market for production due to its good and knowledge human resource. Also Iran has the power to produce little parts and cars and it has access to the neighbor countries’ markets and it’s a bridge for the Europe to trade with East Asia. For these reasons some European countries like France and Italy were partners of Iran’s industries.

Before the JCOPA, Italian, French and East Asians were Iran’s important partners in most industries especially auto industry. These partners made lots of nostalgies because they had a lots of customers in Iran during their present history in Iran.

But after the JCOPA, contracts of Iran and French companies became stronger and contracts signed one after another with private sector and the government and the path of producing joint venture cars flourished. Peugeot 2008 was a result of these contracts. After that the production line of Peugeot-Citroen started jointly with SAIPA but the result of this contract never met the streets.

Before the new sanctions all contracts were going very well with a good speed but after USA announced to exit the JCPOA obstacles appeared in front of cooperation and took the energy of joint venture contracts. After the new sanctions announced, French companies decided to leave Iran and its auto industry.

 Renault and Peugeot have not left Iran but they suspend their activity and part makers’ contract is still active but news show Renault income has decreased after they lose the market in Iran.

n 2018, around 86 million cars were sold in the top 54 world markets. SUVs were popular worldwide and electric car sales grew by 75%.

Global car and light commercial vehicle sales in 2018 contracted by 0.5% to 86 million vehicles. The Volkswagen Group, Toyota and Renault-Nissan were the largest carmakers and manufacturing groups in the world in 2018. Toyota was the leading car brand and the Ford F-Series the top-selling model. The Toyota Corolla was the world’s favorite standard passenger car model in 2018. SUVs made up 36% of the world’s new car market in 2018 with 30 million SUVs sold. The sales of electric cars increased by 74%.

trong results in India, Brazil, Russia and South East Asia offset stalling sales in Europe, China and the US. "The dip in the Chinese market had ramifications upon the rest of the global market in 2018. As China makes up nearly 30% of global vehicle sales, any change that happens there is felt across the rest of the world,” explains Munoz.

In the meantime, Renault's French car sales rose 3.2 percent in 2018, resulting in a joint deal with China. The car company has forecast that this year will be a modest growth amid growing demand in Russia and Latin America. Last year, Renault's sales reached 3.88 million vehicles, including 166,000 sales due to the company's new partnership with China's BERLIN. Regardless of this partnership, Renault's global sales fell 1.2 percent. The company's decline was driven by a decline in sales in Turkey, Iran and India.

The Financial Times also reports that Renault and Nissan officials are adding to the Fiat Chrysler, in addition to negotiating a revival of the alliance.

It was also announced that Peugeot also had a 5% increase in sales in the European market and was one of the few car brands that were fully prepared to deal with the new EU WLTP legislation, but the overall sales of the brand were 17.9 The percentage fell from last year to a total of 1.7 million units. Peugeot had a record 2.1 million units in 2017.

The head of Peugeot's Jin Felipe Imperto finds out the root cause of the breakup of the company Joeinte Ventcher with Iran. In 2017, Peugeot has sold more than 445,000 vehicles to the Iranian market, which has been forced to withdraw from the Iranian market due to the resumption of sanctions by the United States. Peugeot also failed to achieve its expected sales in the Chinese market.

Imperto has also spoken about the brand's return to the North American market for many years, noting that it is a long-term company. Because this return will be a 10-year process and time.

With the current condition of auto industry some governmental officials and market activists believe that Iran can fill the gap of foreign partners after a stagnation period. So we should wait for the second phase of sanctions to see which country will remain in Iran and which one will leave our market. 

* Comment:
دی اس