News ID : 4248
Publish Date : 27 December 2020 - 09:04
With the resumption of sanctions and the withdrawal of foreign partners in the automotive industry, the car market has lost its competitive position, and although some car companies are now trying to return to normalcy, but these days the wrong choice of foreign partner by some private companies The automaker has heightened concerns about hurting the car market and providing after-sales service.
Khodrocar - Chinese companies, which have long been one of the main foreign partners in the automotive industry, have been able to gain a good share of the Iranian car market in recent years, especially in brands such as Haval, FAW and such as Jack and Chery.

In the meantime, some private car companies have started to partner with some unknown Chinese brands these days, which has caused concern because if the lack of proper services while customer dissatisfaction, the car market will suffer.

Accordingly, the theory that these brands should be prevented from entering the country has been highlighted, while automotive industry experts have a different opinion and believe that the trend of these companies in a competitive market will lead to the elimination or survival of these companies and there is no need to prevent them from entering the market.

"If the conditions are ideal and there is a possibility that French, Japanese, Korean and even Chinese top automakers can enter Iran or continue to operate, there should definitely be no restrictions on the activities of these companies. Instead, conditions should be provided for the entry of different brands into the country in order to find their place in a competitive environment.” Babak Sadraei, expert of auto industry told khodrocar reporter.

"In this situation, even an unknown brand can act with strong branding and provide a quality product at a reasonable price as much as it needs to receive market share, and if it is not able to do so, there is still no need to ban its activities because The subconscious will be removed from the market scene.” He said.

"Products such as the L90 and Sandro, which had a high percentage of domestic production and were among the economy cars of Europe a decade ago, and their production technology is related to two decades ago. So, if we look at the situation in such a market, the same cars have a variety of choices compared to the current products that have older technology and have safety problems.” He added.

"Having a pollution standard, design standard and production technology are among the necessary conditions for the car to enter the market, so if it has a competitive market in which all companies are present, this car will find its place and consumers will reach this conclusion. That this car is worth buying or will eventually lose its place in the market.” He said.

"We now see that some brands enter the US market and after a while are not able to stay and leave the market because they do not have the necessary ability and are not welcomed in a competitive market, so without any effort. To remove them, they lose the market, and in the meantime, some brands will succeed.” He continued.

"If the sanctions are lifted and in normal conditions, as well as the market returns to a competitive market, it remains to be seen to what extent these brands can find their place in the market. Therefore, if they have the desired strategy and quality, they can gradually take more market share and reach their desired share.” He added.

"One cannot expect an unknown Chinese brand to gain 5% of the market share, but these companies will eventually gain 5% of the market share, otherwise they are doomed to perish in a competitive market.” He mentioned.

"In the current situation where we are not able to produce a car a few decades ago, these cars are better than nothing. Undoubtedly, cars with even unknown brands have more up-to-date technology and meet the needs of the buyer in terms of appearance and may be for buyers and their choice is more attractive.” He said finally.
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