The nuclear agreement worked out between Iran and world powers will loosen an array of sanctions and provide added incentive for European automakers to pile into the Middle East’s largest auto market. But the return to Iran will not be led by newbies. European and Korean automakers with prior experience in the country will spearhead the charge in an attempt to grab market share from Chinese automakers that filled the void in recent years.
The Iranian market isn’t easy to dominate. Consumers prefer dependable, reasonably priced vehicles. “The most successful companies will be those that can produce an auto for the market priced between $8,000 and $10,000,” says Darius Mehri, a University of California sociologist who has studied the Iranian auto industry.
With U.S. automakers still barred from doing business in Iran, the Iranian market for foreign marques is left largely to the Europeans, including Renault, which along with Peugeot had been sending partially assembled cars to Iran to sell in the local market until the most recent sanctions were put in place in 2011.
Read more At: http://www.ibtimes.com/iran-nuclear-deal-european-automakers-look-lead-charge-middle-easts-largest-car-2010403
No comments:
Post a Comment