Analysis of Iran’s Automotive and Spare Parts Market, What is the Future of this Market?
Analysis of Iran's car and spare parts market; Market size and value
In many countries of the world, a car is considered a consumer product that does not have a high value. But due to unfavorable economic conditions and low supply, the car has become a capital item in Iran. On the other hand, auto spare parts also have a very booming market in Iran, and in recent years, many people are looking for the production of spare parts or their retail sales.
Because of this familiarity of analysis market car and parts spare Iran is very important for investors and sellers in this area. In this article, stay with the act group to examine the Iranian car and spare parts market in detail.
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Analysis market car and parts spare iran in recent years
For analysis market car and parts spare iran, we have to go back a bit. Before the late 80s, Iran’s car and spare parts market had very good conditions.
Because the circulation of car production had increased greatly and companies like iran khodro and Saipa Group, which are among Iran’s Top 5 Carmakers, produced more than 2 million cars annually.
Because of this, the price of cars in the market was very reasonable and there was a good demand for buying all kinds of cars.
On the other hand, due to the increase in car production, the spare parts market had also become very prosperous. Because the cars in the market were in dire need of spare parts.
In general, until the end of 1389 and the beginning of 1390, the analysis of Iran’s auto spare parts market was very good.
But with the start of international sanctions and the increase in the exchange rate, everything underwent drastic changes, and the car and spare parts market was no exception.
The increase in prices and the decrease in people’s purchasing power caused these two markets to face severe recession.
But after 3 to 4 years and whispers of the JCPOA, equilibrium conditions returned to the car and spare parts market.
After concluding the JCPOA contract, analysis The future of the market car And Parts spare Iran was very suitable.
Imports of foreign cars were carried out in large volumes and Iranian car manufacturers also offered their products to the market at a very reasonable price.
Even you could buy Iranian cars with very favorable conditions in installments. But with the withdrawal of the United States from the JCPOA, the conditions of the car and spare parts market became unfavorable again.
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America's withdrawal from the JCPOA; Declining point of the market car and parts spare iran
After the withdrawal of the United States from the JCPOA, the exchange rate rose sharply and the Iranian car and spare parts market faced stagnation again.
At this point, the path of the car and spare parts market was separated from each other.
Many people could not afford to buy new cars, and on the other hand, the import of cars was also banned. Because of this, the second-hand car market was booming.
On the other hand, due to people’s inability to buy new cars, the need to repair active cars was felt more.
For this reason, it should be said in the analysis of Iran’s car and spare parts market that this market prospered more than before.
Of course, due to the increase in the exchange rate, the price of car spare parts was also associated with an unprecedented growth.
But in any case, people had no choice but to buy spare parts for their cars.
It should be noted that during this period, large Iranian component manufacturers such as Cruz faced many problems.
Because most of the Iranian parts makers produced parts for factories like irankhodro and Saipa. But small companies active in this industry were able to gain a large share of the market by offering high-quality and affordable products.
Future analysis market car and parts spare Iran
For analysis Market car And Parts spare Iran, we must look at the existing obstacles. In general, sanctions, mandatory pricing, disproportion between supply and demand, inflationary expectations and severe inflation are among the most important obstacles for the growth of Iran’s auto and spare parts market.
Considering that there is no clear horizon for the elimination of these obstacles in the near future, in future analysis Market car and Parts spare In Iran, it can be said that the increase in prices as well as the decrease in demand can be predicted.
Of course, it must be said that if you are active in the field of production or sale of auto spare parts, the horizon ahead of your business is very suitable.
Because in any situation, the cars in the market need spare parts. That too in the situation that many active cars in Iran are more than 10 years old and are still used by people.
In fact, the older a car is, the more spare parts it will need. Because it has more depreciation.
Is buying a car a reasonable investment?
In analysis Market car And Parts spare Iran, it is very important to check whether buying a car is a reasonable investment or not.
In general, it can be said that buying a car is a low-risk investment in the long run. But provided you don’t use your car a lot.
Because in that case, the price of your car is likely to drop.
Is it suggested to enter the auto spare parts market in Iran?
As mentioned, the auto spare parts market in Iran is more prosperous than ever. The age of many domestic cars in the Iranian market has reached more than 10 years and these cars need new spare parts.
On the other hand, imported cars are at least 5 years old, and after some time they will also need to replace parts.
But in the analysis Market car And Parts spare It should be noted that the Chinese car spare parts market in Iran has a very good future.
Due to the not very high quality of Chinese cars, these cars will definitely need to replace spare parts in the future.
Therefore, importing Chinese car parts in large volume can be a profitable business for you.
Especially since many parts of these cars are scarce in the market and companies such as Modiran Khodro, Bahman motor and Farda Motors are unable to supply spare parts for their cars.
In analysis market car and parts spare of Iran, the exchange rate is the first word
Along with all the components affecting the analysis market car and parts spare iran, the exchange rate or the dollar is the first word.
If the exchange rate remains stable, the future of this market can be predicted better than today.
Otherwise, with the increase in the exchange rate, this market can continue its inflationary and recessionary trend.
Therefore, if you are active in these two markets, be sure to pay special attention to the exchange rate trend in the coming months.
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