Iran Automotive outlook is almost positive with market set to hit the 1.5 million annual sales in 2017, targeting the 2 million by the 2022. Despite the space gained by Chinese during sanctions, PSA and Renault are leaders.
The automotive industry has been crucial in the last 30 years development of e country and represents the second most relevant industrial sector counting approximately 3% of the GDP.
In the year, the born of solid domestic enterprise, in joint venture with French manufacturers, PSA and Renault, created the hub for the surrounding region with local production serving internal and external demand.
The limit was the level of obsolescence of technology, usually two or three steps behind the state of the art. To minimize the impact on consumer’s cost and aiming to utilize the immense natural gas reserves, the industry has focused on NPG engines, creating a strong know how in this sector and raising barriers for import.
Economic sanctions were a big setback for Iran’s automotive industry, especially at a time when the industry was ready for major expansion. Since 2012 the production output decreased by approximately 50% (from 1.4 million to 0.7 million), whilst at the same time vehicles price increased radically by about 300%. Furthermore, the quality of Iranian-made cars dropped at a similar rate as well.
Furthermore, French carmaker’s activity as stopped leaving space to the aggressive Chinese producers, which took the opportunity to enter the country proposing themselves as new production and commercial partners, gaining a wide space in the market. While in 2011 Chinese car manufacturers held around 1% of share, in 2015 they had near 9%.
The end of ONU sanctions moved back the eyes of the entire industry to this market with PSA and Renault able to leverage on consolidated friendless and partnership. The boost of local production supported the growth of demand while prices fell down at reasonable level.
So, at the end of the 2016 the market ranked as World’s 14th and has not yet full-filled the growing spaces.
Our experts vision for the future is positive, with 2017 seen in further strong increase, up to the 1.5 million sales, while targetting the 2 million units in the 2022.
Research, Consulting, Data & Forecast
F2M covers intensively this market with several products developed to help any investigation required.
Market Researches in PDF are immediately available for download with study on the market since 2005 and with forecast up to the 2022.
Auto Data in EXCEL are immediately downloadable with annual sales volume, split by month, for all brands and all models distributed in the market. This year data are released year to date, but you will receive a monthly update until the year-end.
All these and more within our Iran Store