Strategic Overview of the Commercial Vehicle Market in Iran
This Frost & Sullivan research provides a strategic overview of the commercial vehicle market in Iran. It studies the profiles of original equipment manufacturers (OEM) and analyzes the regulations, trade and infrastructure developments that will influence the commercial vehicles market in Iran. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments:
Light duty truck (LDT)
Medium duty truck (MDT)
Heavy duty truck (HDT)
Foreign OEMs to Enjoy Abundant Opportunities through Joint Ventures in Iran
The lifting of economic sanctions on Iran will facilitate the movement of goods within and through Iran; in effect, making the country a major trade and logistics hub. So far, the commercial vehicle market has been stagnant due to a shortage of cargo and construction projects. However, with Iran all set to become a player of global significance, numerous projects to improve port and road infrastructure will get underway, which bodes well for the sales of commercial vehicles.
Customers are eagerly awaiting the return of western OEMs, because of the poor quality of the local products. The OEMs based in China, Japan and Europe are looking to tap this opportunity to establish themselves in the commercial vehicle sector. French and German manufacturers are already in talks with the local manufacturers regarding re-entry, as the new regulations allow foreign entry only through joint ventures.
The commercial vehicle market is dominated by Iran Khodro Company (IKCO) and Societe Anonyme Iranienne de Production Automobile (SAIPA), which handle more than 90 percent of the production in collaboration with European OEMs. Eventually, Chinese, Russian and Japanese OEMs are likely to partner with IKCO and SAIPA, owing to their high quality parts and lower prices.
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