Automotive industry Iran: Good market entry opportunities for international car manufacturers
Iran – The lifting of international sanctions against Iran presents a historic opportunity for automotive OEMs. Experts anticipate solid economic growth of more than 4% per year. Added to that, the country has a population in excess of 78 million – many of them young, well educated and very interested in imported goods.
All of this makes Iran a promising market for the international automotive industry, as for many others. In the coming five years the Roland Berger experts expect to see new car sales double to top some 1.8 million vehicles.
Companies, however, need to do their homework if they want to develop the Iranian market: successful engagement will be difficult without a thorough knowledge of the national specifics in Iran. It is with this in mind that the automotive experts from Roland Berger published their latest study, “Iran – A historic opportunity for automotive OEMs”, in which they analyse the Iranian automotive market and describe the conditions that OEMs need to have in place in order to successfully do business in Iran.
“Iran makes an extremely interesting market for European automotive OEMs in particular,” said Philipp Grosse Kleimann, senior partner at Roland Berger. “Following the lifting of sanctions we expect the economy to grow 4 to 5% every year through 2020. The country has a young population, too, signifying a growing pool of potential car buyers. And Iranians like the high quality of Western products.” In fact, 87% of Iranians value imports “Made in Germany”, 85% anticipate high-quality from American products and 80% expect French and Japanese brands to deliver quality.
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