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Manoochehr Gharavi,
Managing Director,
Iran Khodro Industrial Group

Contrary to a remarkable growth in the Iranian auto industry, the world auto industry is experiencing a sluggish growth. In spite of nearly one million automobiles being turned out per week across the world, the world market is on the brink of saturation. Major auto consumption markets around the world in North America, Western Europe and Japan are faced with a cyclical and slow growth of 2% to 5% for the next decade.

The Iranian market will continue to experience an annual growth rate of 15% to 25% within the next decade. But should we easily place this market at the disposal of others? As a whole, the world auto industry is a giant industry, but its growth is sluggish. In most of the developed countries this industry accounts for 10% of the GDP, but due to the saturation and maturation of the main markets which constitute 80% of the world’s total auto market, its growth is slow. That is why everyone is eyeing our growing markets.

Contrary to our conception that the auto industry is competitive and our insistence that the Iranian auto industry should also become competitive, only six major international auto manufacturers account for 80% of the world auto production. Given the affiliation of 40 smaller auto manufacturers with the six big companies, the Big 6 are responsible for 90% of the world auto production. Is this a competitive industry?