News ID : 4069
Publish Date : 08 July 2020 - 08:59
Planning for large-scale Chinese investment in various industries, including transportation, raises several questions about how they will be present in the automotive industry, including the industry's shortcomings in prioritizing and implementing them. They made the most of this agreement.
Khodrocar - Given that if the 25-year document of the Comprehensive Cooperation Program between Iran and China is approved, transportation will be considered as one of the heads of cooperation between the two countries, there is a possibility that the automotive industry is one of the pillars of this cooperation. However, the question arises as to which of the options such as car assembly, design and production of a common platform or which platform to buy will be given priority?

"If the priorities of this agreement are clear, it is possible to produce up-to-date cars in the first stage with the cooperation of the Chinese and buy a number of platforms from them, and in the final stage to produce a common car for the region and markets that can enter It can be considered as the Russian and African markets.” Babak Sadraei, expert of auto industry told khodrocar reporter.

"Purchasing a large number of Chinese platforms and designing common vehicles in the second phase due to the high capacity available in Iran and China could be at the forefront of this agreement.” He said.

"In the first stage, it remains to be seen to what extent the Iranian car market is available to Chinese automakers, and estimates show that this share has been less than 10 percent in recent years, and it is not profitable for the automaker to produce and plan so let it work in the country.” He mentioned.

"If this share increases in the market and there is more cooperation between Chinese automakers and domestic companies, this joint cooperation will be more economical for them to cooperate with Iranian automakers in the field of production. It will be more economical.” He said.

"As the price of the currency rises, the price of these cars has risen and their market share has declined, while some of these companies have even left Iran, so for the annual production of 50,000 cars, the share of each brand will be very low. It is by no means cost-effective to internalize and develop measures.” He continued.

"When more market share is given to them and they enter the private sector or enter into contracts with domestic automakers, domestic automakers will have to increase circulation to produce new products and at the same time conclude contracts aimed at increasing the amount. Domestic construction will increase in these conditions, and it is possible to produce platforms that can be designed and produced based on Iranian power.” He said.

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