History of Iran’s motorcycle industry

Strat of the production of the motorcycle industry in Iran:

This industry has been established in Iran since the late 1961s at the same time as the establishment of new industries. Today, most motorcycle products in Iran are made in China. Of course, due to sanctions and the lack of imports of Japanese motorcycles, etc., welcoming motorcycles manufactured in Malaysia, Indonesia, Thailand, Italy, Austria, South Korea and especially India (due to the high quality of its products compared to Chinese products) is very good among the Iranian people and have gained special popularity. certainly, since 1398 (2019), Indian products will not be imported to Iran after about 18 years due to new sanctions.

Over the past few years, a new market has been created with the introduction of European brand products or under license, for the motorcycle industry and people who were previously reluctant to use this type of vehicle due to poor quality or lack of interest in existing motorcycle designs, these new products, motivated them to shop and it changed the perception of some manufacturers, who previously said that expensive products cannot be sold in Iran! Of course, branded motorcycles in Iran usually enter Iran through third countries or through licensed factories in Asian countries.

The important point to note is that the motorcycle industry must enter a new phase of its life in order to maintain its survival and grow the country’s industry; This stage is the transfer of technology to Iran! It also requires that as soon as possible motorcycle manufacturers seriously set up their own research and development centers and increase their ties with universities.

If localization has not taken place to date, it is because it is not economically viable.

There are no exact statistics on the number of motorcycles available in Iran, but according to officials, there are about 12 million motorcycles in the country, most of which are worn out.

The most important factors that have increased the demand for motorcycles in Iran in recent decades:

۱- The motorcycle market in Iran is different from developed countries based on its various uses. Basically, in Iran, motorcycles are not only one of the most important means of transportation and transportation of people, but also one of the means of business.

۲- Increasing the price of cars and the impossibility of providing them by low-income groups.

۳- Restrictions created in cities for the use of cars (park, traffic plan area, etc.)

۴- Reducing travel time compared to cars.

۵- Reducing the cost of transportation.

۶- Low cost of maintenance.

۷- It is also worth mentioning that until 1372 (1993), the motorcycle market was exclusively owned by four companies, each of which had a limited variety of products. After 1371 (1992) and 1372 (1993), new companies entered the field of competition, which led to a variety of products and prices.

۸- Until the end of the seventies, motorcycles were considered as capital goods by the people. As a result, some people are forward to purchasing motorcycles to make profitable investments. And by pre-selling products through the official dealerships of manufacturing companies, buyers made a good profit. It is worth noting that in the seventies, the quality of products was also very good and significant.

۹- Since 1379 (2000), due to the delay in the delivery of registered motorcycles, the people’s desire for the pre-sale system of companies has gradually decreased and from 1380 (2001) 1382 to (2003), the market for buying and selling motorcycles became installments and checks and that’s why we can say that the desire to buy motorcycles has also increased because most of the sales representatives of the companies were buying checks and selling checks!

۱۰- Since the end of 1381 (the start of the year 2002), with the intensification of negative competition between manufacturing companies, the price of motorcycles has suddenly dropped sharply (about 50 to 65 percent), and this has increased the demand for motorcycles.

The most important factors that have caused a crisis in the Iranian motorcycle industry over the past few years:

Starting negative competitions between 2002 between producers.

Lack of written strategy and long-term plan on the other hand While supply prices were not economically justified, the checks law has also changed and the producers’ troubles increased again and many of the checks they had already received from their customers were not collected.

Negative attitude of Iranian officials towards motorcycles and their production.

Rising currency prices from ۲۰۱۲ to the present.

Laws and regulations not properly studied by the government, which has repeatedly shut down the industry.

Prohibition of carburetor motorcycle production and import of low-quality injector and quasi-injector products from China.

It is worth noting that the advantages of the injector system are definitely greater than the carburetor, and there is no doubt about that but this change was not made according to a proper procedure.

Investigating the situation of Iran’s motorcycle industry in 2020

According to Motorcycle News, Mohammad Ali Nejadian, editor-in-chief of Sanat Motorcycle, wrote: Iran’s economy, like other countries, has been damaged by the outbreak of coronavirus but now the decline in sales in the motorcycle industry is more due to production barriers than to the virus; Among other things, resolutions that have not been properly researched and expertized have shut down the motorcycle industry in recent years.

Another reason for the recession in this industry is the increase in inflation in Iran and the increase in currency prices over the last two years. It is noteworthy that the value of the Rial against foreign currencies decreased significantly and the price of the currency experienced almost 4 times of growth.

The trend and outlook for the motorcycle market in 2020

Iran has numbered seventy-six thousand and 196 motorcycles from December 22, 2019, 8 days before the start of the year 2020 to May 20, 2020. The division of this number based on the months of Iran is: (from January 21, ۲۰۲۰, to February 19, 2020) Thirteen thousand and 584 devices, (from February ۲۰, ۲۰۲۰, to March 19, 2020) Fifteen thousand and 753 devices, (from March 20, ۲۰۲۰, to April 19, 2020) 558 devices, (from April 20, 2020, to May 20, 2020) Thirty-two thousand and 810 devices.

In total, in the first two months of the year 1399 (from March 20, ۲۰۲۰, to May 20, 2020), Thirty-three thousand and 369 devices have been numbered. This number in the same period of the year 2019 Was: from March 21, ۲۰۱۹, to April 20, 2019, Two thousand and 494 devices and from April 21, 2019, to May 21, 2019, Twenty thousand and 453 devices.

The year of 1398 (from March 21, 2019, to March 19, 2020) is a sharp decline for the Iranian motorcycle industry in terms of declining sales, which is unprecedented. Production statistics for the past few years are listed in the table below each year.