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Strategic Overview of the Commercial Vehicle Market in Iran 

Strategic Overview of the Commercial Vehicle Market in Iran 

  • February 2016
  • 50 pages
  • ID: 3673814
  • Format: PDF
  • Frost & Sullivan

Summary

Table of Contents

Strategic Overview of Commercial Vehicle Market in Iran : Iranian Commercial Vehicle Demand to Exceed 300 Thousand Units by 2022

With the lifting of sanctions, Iran is expected to be a major trade and logistics hub. Easier movement of goods with no threat of sanctions will result in significant trade opportunities. There are proposed projects to improve port and road infrastructure through partnerships with various nations. The commercial vehicle market is expected to pick up after Q1 2016. The market has remained stagnant for a while due to both external and internal factors crippling economic growth and trade. French and German original equipment manufacturers (OEMs) are in talks with local commercial vehicle manufacturers to begin the process of re-entry with the sanctions having been lifted. Customers are awaiting the return of western OEMs and holding back purchases.

Key Research Takeaways

Commercial Vehicle Market: Key Research Takeaways, Iran, 2015–2022
With the lifting of sanctions, Iran is expected to be a major trade and logistics hub. Easier movement of goods with no threat of sanctions will provide great trade opportunities in Iran. There are proposed projects to improve port and road infrastructure through partnerships with various nations.

The commercial vehicle (CV) market is expected to pick up after Q1 2016, experiencing a healthy CAGR of % from 2015 to 2022. The market has remained stagnant for a while due to both external and internal factors crippling economic growth and trade.

French and German original equipment manufacturers (OEMs) are already in talks with local commercial vehicle manufacturers to begin the process of re-entry with the sanctions having been lifted. Customers are awaiting the return of Western OEMs and holding back purchases in a market currently riddled with substandard quality.

The commercial vehicle market is dominated by local manufacturers such as IKCO, SAIPA, and Bahman Group, which, in partnership with various foreign OEMs make up % of the total market.

Increase in trade and infrastructure development after the lifting of sanctions as well as a mandate from local municipalities to improve public transport will result in robust growth for medium and heavy duty truck (M&HDT) truck and bus segments.

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