It seems that the not so successful export experience in the field of automobile industry has reached Eurasia this time because whispers of exporting Iran Khodro products to Russia are heard loudly these days and the market of this country is also ready for products such as Tara and Dena, Samand and Rana have announced.
Khodrocar - In the latest incident, Iran Ambassador to Russia Kazem Jalali with Farshad Moghimi, CEO of Iran Khodro in a webinar, while reviewing the situation of the Russian car market and Iran Khodro's export facilities and capabilities to participate in target markets, especially the Russian market, Iran Khodro's long-term entry strategies for cooperation with Examined Russian companies.
In this conversation, direct presence and delivery of manufactured products, joint production in Russia and export to Eurasian countries, establishment of a joint venture to cooperate in the design, manufacture, sale and transfer of technology, use of the production line capacity of Russian companies for production Iran Khodro products, joint production and assembly in Iran and other areas of cooperation, including in the production of heavy vehicles, were examined by both parties and it was decided that Iran Khodro Company cooperate in the form of a joint commission document and also within the framework of the joint industrial working group document.
In this situation, the question arises, given the conditions of the automotive industry in Russia and also the previous experience of the Iranian automotive industry in creating foreign sites and the sterility of the planned programs, can the Eurasian market be a good option for Iranian automakers that these days Struggling with high accumulated losses?
"Joint meetings with the ambassador can’t be a strategy for exporting cars to the destination country, while in Russia the market for second-hand cars is open and people in Russia can buy a used BMW car from Western Europe for about $ 15,000. Buy while import tariffs are low, so it is not true to expect the Russian people to be very willing to buy Dena plus Turbo for $ 35,000.” Farbod Zaveh, expert of auto industry told khodrocar reporter.
"At present, the price of Dena Plus Turbo in Iran is equal to 25 thousand dollars, with this figure, many zero cars can be bought in the Russian market, and it is even possible to buy a 2012 BMW 528 model.” He added.
"There may be minor developments in the field of exports to Russia, but the products intended for export are high-cost products that have many global competitors, similar models of these cars are being sold in Russia at very low prices, and even in Items are half the price of the car that Iran Khodro is selling, so we should not repeat the wrong way before, which was to create a site in foreign countries and wasted a lot of capital.” He said.
"Exports require high financial resources and Iran Khodro must determine what place it has to provide these financial resources in the current situation and with high accumulated losses. The export of 10 cars with a price of 10 thousand dollars will be equivalent to 100 million dollars and it must be determined where the supply of these two thousand billion tomans is.” He said.
"In terms of imports, the Russian car industry has been sold to almost all foreign companies and foreign factories are active in this country, so how can a country that has not been able to maintain its car industry affect the Iranian car industry?” He mentioned.
"Despite the investment, the value of sales and exports did not reach the value of the investment. The issue of export in Iran Khodro is a sub-issue according to the current situation, because it has to sell the manufactured cars to its foreign distributor for at least 90 days, which can be solved with the financial situation of this company.” He called.
"The Russians do not have the technology to produce and only have one brand called Lada, which is a subsidiary of Dacia and Dacia is a subsidiary of Renault, so any cooperation with Lada requires cooperation with Peugeot, so the best course of action is to cooperate with Renault.” He said.
"There is no company in Russia that transfers technology to Iran as a result of this cooperation, and when you do not succeed in cooperating with the world's top companies, how can you succeed in cooperating with an ordinary company.” He added.
In this conversation, direct presence and delivery of manufactured products, joint production in Russia and export to Eurasian countries, establishment of a joint venture to cooperate in the design, manufacture, sale and transfer of technology, use of the production line capacity of Russian companies for production Iran Khodro products, joint production and assembly in Iran and other areas of cooperation, including in the production of heavy vehicles, were examined by both parties and it was decided that Iran Khodro Company cooperate in the form of a joint commission document and also within the framework of the joint industrial working group document.
In this situation, the question arises, given the conditions of the automotive industry in Russia and also the previous experience of the Iranian automotive industry in creating foreign sites and the sterility of the planned programs, can the Eurasian market be a good option for Iranian automakers that these days Struggling with high accumulated losses?
"Joint meetings with the ambassador can’t be a strategy for exporting cars to the destination country, while in Russia the market for second-hand cars is open and people in Russia can buy a used BMW car from Western Europe for about $ 15,000. Buy while import tariffs are low, so it is not true to expect the Russian people to be very willing to buy Dena plus Turbo for $ 35,000.” Farbod Zaveh, expert of auto industry told khodrocar reporter.
"At present, the price of Dena Plus Turbo in Iran is equal to 25 thousand dollars, with this figure, many zero cars can be bought in the Russian market, and it is even possible to buy a 2012 BMW 528 model.” He added.
"There may be minor developments in the field of exports to Russia, but the products intended for export are high-cost products that have many global competitors, similar models of these cars are being sold in Russia at very low prices, and even in Items are half the price of the car that Iran Khodro is selling, so we should not repeat the wrong way before, which was to create a site in foreign countries and wasted a lot of capital.” He said.
"Exports require high financial resources and Iran Khodro must determine what place it has to provide these financial resources in the current situation and with high accumulated losses. The export of 10 cars with a price of 10 thousand dollars will be equivalent to 100 million dollars and it must be determined where the supply of these two thousand billion tomans is.” He said.
"In terms of imports, the Russian car industry has been sold to almost all foreign companies and foreign factories are active in this country, so how can a country that has not been able to maintain its car industry affect the Iranian car industry?” He mentioned.
"Despite the investment, the value of sales and exports did not reach the value of the investment. The issue of export in Iran Khodro is a sub-issue according to the current situation, because it has to sell the manufactured cars to its foreign distributor for at least 90 days, which can be solved with the financial situation of this company.” He called.
"The Russians do not have the technology to produce and only have one brand called Lada, which is a subsidiary of Dacia and Dacia is a subsidiary of Renault, so any cooperation with Lada requires cooperation with Peugeot, so the best course of action is to cooperate with Renault.” He said.
"There is no company in Russia that transfers technology to Iran as a result of this cooperation, and when you do not succeed in cooperating with the world's top companies, how can you succeed in cooperating with an ordinary company.” He added.
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