Daimler to Fight Off Rival Brands for a Strong Share of Iranian Market
Published On Feb 23, 2016
Daimler has cemented itself as a global truck maker, with a strong market position in countries across the world. With the recent lifting of sanctions against Iran, the company had decided to commence operations in the Middle Eastern country. However, various brands from across the world are looking to capitalize on the new market, and the German company is readying to fend off renewed rivalries.
During Daimler’s six-year absence in Iran, numerous Chinese manufacturers had dominated the market space. As Daimler prepares to regain a firm stance in the Iranian market, it needs to combat these well-entrenched brands. Wolfgang Bernhard, head of the company's trucks division, commented, “The chairs we used to sit on in Iran weren’t left empty when we were gone. Chinese competitors now sit in these chairs.”
The star-brand is eyeing Iran and other emerging countries to supplant its more difficult position in other markets. The company is faring badly in the North American region, where recession has led to a fall in production. Just recently, the company had axed more than a 1000 jobs in its facilities in Brazil as a result of the stagnant demand. The impacts of a new economic slip has reached divisions of the company around the world as well. China's market, once a thriving hub for manufacturing, has taken a massive fall, and this has led to many companies receding from the market and looking for growth elsewhere.
With a fresh new market opening on the horizons, Daimler is rushing to firmly establish itself there. After announcing that it was re-entering the Iranian market, Daimler had joint hands with Iran Khodro Co., an auto major in the company, to commence its operations in the region. However, as performance flourishes through this new avenue for the brand, it is also preparing to fend off a range of other companies looking to gain from the fertile Iranian soil.