Meanwhile, the Ministry of Industry announces its readiness to introduce new Chinese brands in car production, as well as joint ventures with Iraqis for the purpose of joint production. Experts in this field believe that economic stability and attention to cheap and economical production are necessary to achieve this. Because with the current situation, only such a product can be the trump card of newcomers.
Khodrocar - Alireza Razm Hosseini, Minister of Industry, while announcing his plan for Chinese brands to enter the car market, said that the condition for this action is the cooperation of the private sector with brands that have the power to compete with domestic automakers. The remarks come as some private automakers, which are trying to develop their products with Chinese support, are already facing difficulties along the way.
These days, when purchasing power is severely reduced, competition in the car market, which many experts consider monopolistic, depends on economic production, cheap and up to current world standards. Undoubtedly, the production of such a car with these features can fill the gap in the market today.
"Every carmaker will definitely face problems and obstacles to enter a market such as the monopoly market of Iran, from the discussion of production to after-sales service, as well as setting up a sales system, it is a time-consuming and long process, which is the most important issue of branding and creation, confidence will be in the hearts of customers.” Babak Sadraei, expert of auto industry told khodrocar reporter.
"If the sanctions are lifted and foreign partners or well-known brands such as Volkswagen return to the car market, there is definitely no need to do anything special because the brand is well-known and they only need to set up a standard system. To be able to work and cooperate with the mother system, which of course is a very difficult task in Iran.” He said.
"This difficulty is much more difficult for Chinese brands because it takes a long way to establish and introduce the brand in the eyes and minds of the customer and the audience that is to be created in the market.” He mentioned.
"The way new Chinese companies that are just entering the market compete with automakers is by negotiating with companies that can jointly produce economical and low-cost platforms to compete with domestic products.” He called.
"The selection of a new Chinese partner should take into account the production cars and their prices, otherwise the prices will not be economically viable to compete and in this case there is no purchasing power unless there are automakers that can produce cheap cars. In these circumstances, having a program of localization and mass circulation, as well as mass production, production will be economical to be able to compete with Iran Khodro and Saipa.” He continued.
"The implementation of this measure requires a determination and stability in the country, while the market is not stable at the moment and the price of currency is constantly increasing, which will cause a lot of damage to any car manufacturer that wants to enter the market.” He added.
He mentioned that a carmaker is known in the market in a situation where there is economic stability in the country, it is in this situation that carmakers can have a strategy and plan for their future.
In the end, he states that the production of cheap and economical cars with normal safety and environmental standards is the basic need of the country in car production.
These days, when purchasing power is severely reduced, competition in the car market, which many experts consider monopolistic, depends on economic production, cheap and up to current world standards. Undoubtedly, the production of such a car with these features can fill the gap in the market today.
"Every carmaker will definitely face problems and obstacles to enter a market such as the monopoly market of Iran, from the discussion of production to after-sales service, as well as setting up a sales system, it is a time-consuming and long process, which is the most important issue of branding and creation, confidence will be in the hearts of customers.” Babak Sadraei, expert of auto industry told khodrocar reporter.
"If the sanctions are lifted and foreign partners or well-known brands such as Volkswagen return to the car market, there is definitely no need to do anything special because the brand is well-known and they only need to set up a standard system. To be able to work and cooperate with the mother system, which of course is a very difficult task in Iran.” He said.
"This difficulty is much more difficult for Chinese brands because it takes a long way to establish and introduce the brand in the eyes and minds of the customer and the audience that is to be created in the market.” He mentioned.
"The way new Chinese companies that are just entering the market compete with automakers is by negotiating with companies that can jointly produce economical and low-cost platforms to compete with domestic products.” He called.
"The selection of a new Chinese partner should take into account the production cars and their prices, otherwise the prices will not be economically viable to compete and in this case there is no purchasing power unless there are automakers that can produce cheap cars. In these circumstances, having a program of localization and mass circulation, as well as mass production, production will be economical to be able to compete with Iran Khodro and Saipa.” He continued.
"The implementation of this measure requires a determination and stability in the country, while the market is not stable at the moment and the price of currency is constantly increasing, which will cause a lot of damage to any car manufacturer that wants to enter the market.” He added.
He mentioned that a carmaker is known in the market in a situation where there is economic stability in the country, it is in this situation that carmakers can have a strategy and plan for their future.
In the end, he states that the production of cheap and economical cars with normal safety and environmental standards is the basic need of the country in car production.
Latest News
