Peugeot and Renault 2018 in Iran Review
- The Iranian automobile market declined by 32.9% in 2018 (960,000 units compared to 1.43 million in 2017) following the economic sanctions imposed by the US administration in 2018. As a result, the objectives of the two French brands present in Iran, Peugeot and Renault, were frustrated in 2018 by these sanctions, which took effect in the second half of 2018.
- As a result, Peugeot did not reach the 500,000 sales expected and Renault did not reach the 200,000 sales expected. Instead, Peugeot sales decreased from 443,000 units in 2017 to 353,000 in 2018, and Renault sales decreased from 162,000 units in 2017 to 102,000 in 2018. This means that 150,000 sales were lost by these French brands in 2018 compared to 2017, and even 250,000 compared to their targets. The year 2019 is likely to be even worse, as economic sanctions will be taken into account throughout the year and not just for a half-year, as in 2018.
- The only brands that managed to increase their sales were Chinese brands such as JAC, Dongfeng, FAW, Changan, MG and Great Wall (which did not sell vehicles in 2017), thanks to very low prices. Hyundai and Mazda also improved for the same reasons. The economic sanctions introduced in the country have understandably encouraged Iranian customers to switch to low-cost models. In addition, Chinese manufacturers are not affected by economic sanctions against Iran, since the Chinese government does not follow US sanctions policy.
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