Chinese carmakers to face hard competition with Europeans in Iran
Tehran, Iran, July 28
By Temkin Jafarov - Trend:
The CEO of Iran Khodro Industrial Group says Chinese automakers will face hard competition with European companies in Iran's post-sanctions era.
Iran Khodro Industrial Group, also known as IKCO, is the leading Iranian vehicle manufacturer.
The CEO of Iran Khodro Industrial Group (IKCO) Hashem Yekeh Zareh announced during a press conference on July 28 that French Peugeot and Renault as well as Japanese Suzuki have already agreed to return to Iran and Iran wants to add another European giant automaker company to its partners list. He said that Iran doesn't intend to give more than 5 percent share in domestic auto market to Chinese companies in future.
He said that German Mercedes-Benz was Iran's major partner before sanctions and Iran started negotiations with this company to return to the Iranian market by signing a 10-year agreement to produce autobuses and trucks in Iran.
Iran is one of the biggest countries in region in term of producing cars.
The 2014 production statistics by the International Organization of Motor Vehicle Manufacturers (OICA) show Iran's auto production increased by 46.7 percent in the 12-month period. The figures indicate the Iranian automakers produced 1,090,846 cars and commercial vehicles last year.
Iran's Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh said on July 23 that Iran was looking to move away from state ownership in many sectors, creating joint ventures for auto parts manufacturers with the aim to produce 3 million vehicles by 2025, of which a third would be exported.
Edited by CN