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Investment Opportunity: Motorcycle Engine Production

Investment Opportunity: Motorcycle Engine Production Investment Opportunity: Motorcycle Engine Production

Motorcycles have long been a familiar sight in Iran, as they started roaring down its streets more than 60 years ago.

Hence, motorcycle and its parts have been produced domestically since a long time. However, one essential part that has been missing in the market to date is domestically-made motorcycle engine.

With more than eight million motorcycles in Iran, domestic producers manufacturing close to 600,000 bikes per year and access to all the required raw materials, investment in the production of motorcycle engines is a sound venture.

According to Rajabali Ghaebi, an industry player, the production of motorcycle engines in Iran can not only be a driving force for the country’s economy, considering the 500 direct job opportunities each production line provides, but it can also be a significant opportunity for investors looking for potential sectors.

“Domestic motorcycle producers and even regional countries manufacturers annually spend millions of dollars to import engines,” said Ghaebi, adding that production of high quality engines in Iran will open doors to an untapped market.

An initial investment of at least $13 million and a plot of land spread over 50,000 square meters are required to set up the production plant, “as a motorcycle engine is a very complex piece, and more than 300 different types of machinery, ranging from computerized control machines to lathes are needed for its manufacture”, Ghaebi said.

The expert noted that producers must also consider investing in research and development throughout the manufacturing process and consult mechanical and metallurgy engineers.

“Motorcycle engine production is a highly competitive sector and only technological breakthroughs and innovations can help sustaine a profit margin,” he said.

Financialtribune.com