Research and Markets: Strategic Analysis of the Passenger Cars Market in Iran - Demand for Dual-fuel Cars to Increase in Iran's Booming Passenger Cars Market
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DUBLIN--Research and Markets (http://www.researchandmarkets.com/research/cf160f/strategic_analysis) has announced the addition of Frost & Sullivan's new report "Strategic Analysis of the Passenger Cars Market in Iran" to their offering.
This research service provides crucial insights about the Iran Passenger Cars Market. The research service highlights brief overview of the Iran Economy market, classification of Passenger Cars, market share of Cars manufacturers. The research service features about the trends in fuel segmentation, forecast passenger car market till 2015 It is estimated that the demand will reach to 2.2 million units for passenger cars by 2015 due to scrapping policy imposed by Iran to replace the aging old cars majority of which constitutes of Payakan. Wide Dealership network and high localization content helps Iran Khodro Company & Saipa Automotive Manufacturing Company to occupy more than 95 percent of market share.
Research Overview This Frost & Sullivan research service titled Strategic Analysis of the Passenger Cars Market in Iran provides a brief overview of the Iranian economy, trends for passenger cars, classification of passenger cars, and market share of car manufacturers. The research also features the trends in fuel segmentation and forecasts for the passenger cars market in the country until 2015. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments: original equipment manufacturers (OEMs) and aftermarket parts manufacturers.
Market Overview
Demand for Dual-fuel Cars to Increase in Iran's Booming Passenger Cars Market
Car manufacturers are likely to have immense opportunities to tap the passenger cars market in Iran, as the Governments new scrapping policy is expected to phase about 1.2 million passenger cars off the road by March 2012. This is likely to trigger a demand for more than 2.2 million units by 2015 to replace the old models and target new buyers as well. Government-owned car manufacturers, Iran Khodro and SAIPA, which dominate the Iranian passenger cars market with a combined share of 95 percent, are offering finance schemes at competitive interest rates to attract customers. In 2009, models such as Peugeot 405, Pride, Samand, Soren, and Logan accounted for more than 80 percent of the cars sold in Iran. The main reason for the popularity of these models is their low cost price due to localization, widespread dealership network, and high re-sale value.
However, locally manufactured cars are of lower quality and have outdated designs. There are more than 1,200 auto component manufacturers in Iran, of which, only 129 are Grade-A suppliers. The Iranian Passenger car market is dependent on the foreign car manufacturers for the technology and is treated as dumping market for outdated European car models, says the analyst of this research. Due to the technological constraints, auto parts supplied by the manufacturers are not up to the quality mark either. High inflation and exorbitant import tariffs discourage Iranians from buying foreign cars.
Going forward, car manufacturers will also have to manufacture dual-fuel vehicles. Iran is the seventh-largest producer of oil in the world. However, it is forced to import fuel from neighboring countries due to limitations in fuel refining. While fuel is available at heavily subsidized prices in Iran, the fuel subsidy is likely to be removed by 2011, which is expected to increase the fuel price by 40 percent. As a result, the demand for dual-fuel cars or cars with compressed natural gas (CNG) is expected to increase by 70 percent by 2014, notes the analyst. To meet this demand, car manufacturers are expected to produce a minimum of 50 percent of cars as dual-fuel by 2013.
The political situation in Iran too can pose a problem for business. The country is poised on the edge of a period of increased political instability with the emergence of a new style of reform movement. This movement has become increasingly radicalized over the past few years by the maneuverings of the country's hard-line conservatives. For any manufacturer looking to enter the Iranian market, the key would be to form a joint venture with Iran Khodro or SAIPA. With no presence of the U.S. car manufacturers due to sanctions, there is also a great opportunity for Asian and European car manufacturers to set up their local manufacturing units. Localization is expected to keep manufacturing costs low.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Original equipment manufacturers
- Aftermarket parts manufacturers
Key Topics Covered:
1 Executive Summary
2. Overview of the Macroeconomics Indicators in Iran
3. National Automotive Policies and Aspirations
4. Iranian Passenger Cars Marker Overview
5. Annexure
6. About Frost & Sullivan
For more information visit http://www.researchandmarkets.com/research/cf160f/strategic_analysis
