News ID : 4038
Publish Date : 08 June 2020 - 09:13
Registration of 5 million applicants in the extraordinary sales plans of two major automakers has disrupted the calculations for the annual identification of two million vehicles, making it possible for foreign companies present in Iran to invest in a new ratio and increase market share.
Khodrocar - Annual production of one million vehicles meets the country's annual need for the automotive industry, but these days, with the inflammation in the car market, demand has increased dramatically, as evidenced by the number of applicants.

In this context, the question arises whether it is possible to rely on 5 million applicants and registrants in the extraordinary sales plans of automakers to consider the need of the Iranian market as this amount of vehicles and whether foreign companies present in the Iranian automotive industry, relying on this. Need to make a new investment in order to meet the needs and gain more share of the Iranian car market?

"Due to the unprofitable cost of large companies and the challenges facing small companies, we have not yet been able to motivate foreign companies to enter the automotive industry, and the investments made have always been affected by sanctions. The current situation makes it unlikely that Chinese companies will be wary of the US market.” Aghil Mostafaei, expert of auto industry told khodrocar reporter.

"In 1396, the equivalent of 180,000 Peugeot 206s were produced. The production of these cars is equal to the production of Chinese companies by one year. However, many companies are reluctant to take this risk.” He said.

"Despite this, it seems to me that foreign companies tend to increase investment and production in Iran unless the automotive industry proves itself over time. Although the Iranian market is increasing production, it is unlikely. It seems that 5 million applicants for the purchase are the real consumer.” He added.

"Existing manufacturing sites are currently facing many obstacles, and if something positive were to happen in the industry, including all the companies and the empty production lines, many of them would be based on the current situation of Chinese companies proving that the Iranian market is prone. But it still carries a high investment risk.” He mentioned.

"The need of the Iranian market for cars is a need that is not fully met, but not necessarily all these 5 million car registrants are consumers, because a large part of this number are those who are looking to buy a car to maintain the value of capital after one The year in which the sale was possible, proceed to sell and make a profit.” He continued.

"The share of sales and marketing of Chinese companies in the Iranian automotive industry is completely different from the two Iranian automakers, and in previous years they did not have a large market share. They also had a range of different customers.” He said.

"Those who have always wanted to buy a car like Peugeot 405 with the production of any car still tend to buy Peugeot 405 and Chinese companies with different products will still not be willing to buy while with restrictions on pre-sale, the possibility of increasing the share there will be no market from the Chinese.” He added.

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