Iran to increase regional market share by 2025

TEHRAN (ISNA)- In-depth studies suggest that the regional countries would enjoy a market of 6,700,000 vehicles in 2025, 4m of which would be new demands, said the CEO of Iran’s leading vehicle manufacturer, Iran Khodro.

In an address to the first International Conference on Industrial Management in Tehran, Hashem Yekehzareh provided the participants with a detailed report on the regional production, import and export of cars.

“Now the main question is that how many shares the Iranian car makers are willing to gain in the market,” he noted.

Yekehzareh further went on saying that according to a plan developed by Iran’s Ministry of Industry, Trade and Mine, the Iranian car makers should produce three million vehicles and export one third of them by 2025.

IKCO CEO also added, Iran and its 24 neighboring countries establish a booming market with a population of 575 million people.

“The region’s car makers produce 2,700,000 cars; however 4,400,000 ones are being sold in this market. The rest 1,700,000 cars are supplied via import. Unfortunately, the Iranian car manufacturers have a relatively little share in this market,” he noted.

Yekehzare emphasized that Iran should gain greater shares of the market and added, “Meeting at least one-fourth of the regions needs is a feasible strategy for us but this is not possible without close cooperation of influential organizations in our economy and

industry.”

“In 2015, IKCO’s turnover stood at about $23 billion but we predict that the amount would reach $50 billion by 2025 due to the considerable potential of Iran’s car industry,” he said.

Yekehzare noted that IKCO has already signed a number of MoUs with the French and German car makers Peugeot and Mercedes-Benz.

“Another important agreement is set to be signed with a well-known carmanufacturer in the near future. But the main point we have in mind is that signing contracts with foreign partners is not the only way to the development of our car industry. Instead we should put our focus on strengthening our local brands, producing further driving forces and increasing our research programs,” he concluded.

Iran Khodro is the largest car manufacturer in the Middle East with a capacity to produce over one million vehicles annually.

IKCO’s products have already been exported to CIS region. Meanwhile, some Arab countries including Iraq, Syria, Egypt and Algeria are among the main export destinations of IKCO’s vehicles.

The company has recently put on its agenda establishing new rounds of cooperation with its foreign partners with the aim of bringing variety to its production portfolio and increasing production for further export.

By ISNA