The German auto parts supplier said it intended to open a new regional office in Tehran, as it sees great potential in Iran’s automotive market.
After the sanctions were partially lifted, the companies within the automotive world are rushing to return in Iran, as the opening of the country’s market is seen to offer new revenue opportunities. The German Bosch Group announced it was opening a new regional office in Tehran, the nation’s capital, to reestablish its contacts with former partners and customers. Bosch plans to employ there around 50 staff by the end of the year.
“We are delighted to be back in Iran. In our quest to pick up speed quickly, we are benefiting first and foremost from reestablishing contact with former local partners and customers,” Uwe Raschke, the Bosch board of management member responsible for Europe, Middle East and Africa, said. “The country’s potential is tremendous. We expect to see the Iranian economy grow by just under five percent this year. The medium term is also highly promising.”
The country’s outdated fleet asks for large investments, especially in the commercial-vehicle segment. The Iranian auto market reached a peak of 1.6 million vehicles in 2011 and some analysts are projecting it should regain this level within 2 years, and overpassing it afterwards.
But Bosh is not just aiming for the automotive sector, where more than one million vehicles are expected to be produced locally in 2016, some nine percent more than last year. The company also wants to take advantage of the government’s plans to heavy invest in local infrastructure in the coming years. “We can support the country’s modernization process with a wide range of products and solutions, including mechanical engineering applications, solutions for connecting infrastructure and energy and building technology, as well as innovative household appliances and power tools,” Raschke said.
In addition to the reentry in Iran, Bosch has also recently opened its first location in Pakistan, by setting up a sales office in the country’s second-largest city, Lahore.