After the removal of sanctions on the Iranian economy, international tire companies may be able to take a chunk of the local market share, according to a new report from Britain.
The replacement Iranian tire segment accounted for around two-thirds of the market share in 2014. However, the expected increase in automobile production during the forecast period 2015-20 is expected to increase the share of domestic tire segment during the period, according to SCITECH.
Over the past few years, various international tire brands like Bridgestone, Continental and Michelin had restricted operations in the Islamic Republic due to the sanctions.
Consequently, over the course of last few years, the Iranian market was dominated by domestic tire companies like Barez Tire, Kavir Tire and Yazd Tire, which will now face international competition once again.
The immediate easing of sanctions is expected to trigger the reentry of leading international players into the country, which would reduce the market dominance of domestic tire manufacturers.
