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24 November 2017

Iran is the right choice for the Polish automotive sector

On 13-16th of November Tehran Iran Auto Parts IAPEX 2017 took place. Representatives of the Polish automotive sector, who are keen to benefit from the rapidly growing demand for Iranian products, were present at the national PAIH Trade Show in Tehran. The Pavilion, in which the offer of Polish companies was presented, was one of the most visited part of the fair.
Following the abolition of the embargo, Iran, the second largest consumer market in the Middle East and North Africa,  home to over 80 million people, is quickly catching up with the rest of the world. Today Iran is no longer a peripheral country, but a dynamically developing economy and a growing demands of the demographically young society.

- The isolated  so far country, finally deserved to be disillusioned and injected with foreign capital for Iranian business backed by the government circles -  comments Wojciech Fedko, vice president of PAIH, responsible for supporting foreign expansion of Polish companies.
Particularly interesting possibilities of bilateral cooperation The Polish Investment and Trade Agency recognizes in the automotive sector. According to the vice-president Fedko, the automotive sector may be the cause of strong relations between Poland and Iran in the future. - For many people, it will be a surprise that Iran is the 18th largest automotive producer in the world with Peugeot and Mercedes licenses. Poland, in turn, is leading in the production of automotive components. These national specialties naturally build the ground for the bilateral cooperation - says PAIH vice president. According to PAIH, by 2025, Iran plans to launch three million vehicles annually, one third of which will be sent abroad. Production is steadily increasing. Only in the last six months has the Iranian automobile industry recorded an increase by 18% year-on-year. In the same period sales of the sector increased by 10% YoY.

Auto Parts Int. Exhibition 2017 is one of the largest and most prestigious Iranian trade fairs dedicated to automotive and industrial automation sectors (including automotive parts and components, industrial / agricultural engines). The fair is placed in the modern complex of Tehran International Exhibition Fairground. The event attracts over 1,500 exhibitors from 20 countries every year. - This is the first PAIH trade fair in Iran. We are very pleased that it met with the keen interest of Polish manufacturers, ready to explore with our support new markets. We hope that the Agency and its qualified team in Tehran will be a kind of spiritus movens for the automotive sector in this part of the world - Fedko added.

At the PAIH stand at the Auto Parts IAPEX 2017 were presented following companies: AC S.A., ATMP, Techmot, Arcom and Kamar. In addition, its own stand had Lotos Oil. During the first two days, Polish entrepreneurs held more than 50 meetings with Iranian partners who looked closer to their offer.  

However, in order to convert the desire and capital into a profitable market entry in such a specific and demanding region as the Middle East, it is recommended to equip yourself with specific knowledge. Therefore, the Polish Investment and Trade Agency together with its partners: the Embassy of Iran in Poland, the Polish-Iranian Chamber of Commerce, KUKE and KPMG Company, organized during the trade show, workshop concerning the opportunities and conditions for doing business in Iran. When planning to export or invest in Iran, you should still be vigilant and mindful of the specifics of the country's business culture and the difficulties associated with the money transfers.

For more sector and business environment in Iran information, please contact our office. (PAIH)

We invite you to take a look at the thematic report prepared by our office in Tehran: IRAN - NEW DESTINATION FOR AUTOMOTIVE BUSINESS

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