market dynamics
Build Chinese brands and give a voice to the world -- the Iranian car market
Release date:2019.05.27

Iran is the leading automobile manufacturing country in the Middle East and one of the earliest automobile manufacturing countries in the Asian continent. Currently, there are 25 automobile manufacturing enterprises in Iran, whose products include light and heavy vehicles. All have partnerships with world-renowned car manufacturers such as Peugeot and Citroen of France, Volkswagen of Germany, nissan and Toyota of Japan, kia of South Korea, proton of Malaysia, chery of China and other light and heavy vehicle manufacturers.


The products of Iranian manufacturers include motorcycles, passenger cars, vans, micro trucks, medium trucks, heavy trucks, micro buses, large buses, and heavy vehicles, which are widely used in Iran's domestic industrial and commercial production activities. Although Iran produces a lot of cars, experts agree that the country is far from producing enough to meet its domestic needs. Local manufacturers cannot meet the 1.5m vehicles needed.


At present, nearly half of the vehicles in Iran are more than 25 years old, and the density of motor vehicles is relatively low, about 55 per 1,000 people. The Iraqi government has lowered import tariffs on light vehicles for several years in a row. Imported cars have flooded into the country. Due to low local production and high demand, the tariff on imported heavy vehicles is only 20% of the vehicle price. The main brands of imported heavy vehicles in Iran include Toyota, BMW, Mercedes, Rover, ssangyong, audi, lexus, Rio, hyundai (including Sonata and Azar1), Citroen, dyke, Peugeot, lamborghini, Volkswagen, Renault and so on.


As western countries gradually lift sanctions on Iran, Iran has been in urgent need of economic development and job creation in recent years. The "One Belt And One Road" initiative put forward by China is pushing forward the multi-dimensional cooperation between Chinese enterprises and the Iranian industry, and has become a new driving force for the benefit of the local people and the promotion of china-iran economic and trade cooperation.

According to data provided by the association of Chinese enterprises in Iran, the number of Chinese enterprises officially registered with the association has reached more than 100, among which manufacturing enterprises account for nearly half, covering the fields of infrastructure construction, equipment manufacturing, automobile and communications. Chinese products have not only expanded their market share, but also fundamentally changed their overall image. "high-tech, high-quality and guaranteed" has become a new impression of "made in China" among more and more iranians.


After years of efforts, Chinese enterprises that "go global" have now realized the transformation from "export of labor services" to "export of technology, management and capital" in Iran. Many china-iran cooperation projects have established humanized management models and incorporated local culture. These projects have received increasing attention from local media, and their benefits and positive role in promoting employment have been widely praised.

Pang sen, Chinese ambassador to Iran, said that Iran is located between Eurasia and an important hub connecting the east and the west. In the new historical period, the construction of "One Belt And One Road" was positively responded by Iran. China is Iran's largest trading partner and overseas export destination.