Doing business in Iran requires quite a learning curve (like what does homologation mean?). And what will it mean for the rest of us?
Homologation breaks down to mean “official approval” and in Iran, that’s not so easy to come by. Even in the oil rich country, they have strict rules on fuel economy (they’re low on refining capacity) and they are generally distrustful of foreign companies. Iran’s auto market is burgeoning, but most of the vehicles are produced within its borders. So far only six foreign companies have broken in: Mercedes Benz, Toyota, BMW, Hyundai, Lexus and Mitsubishi.
"We’re currently studying the opportunity in Iran,“ says Robin Cogan, managing director JLR in the Middle East region, “which is a country with very significant oil wealth, but it also has a very significant population. There is quite a long process of homologation and testing that’s actually very well controlled and processed and that’s work that is in process for us now.”
But things are moving forward in the region. Last month Land Rover inked a deal with the Sardar Group, the largest privately-owned auto group in Iraq, as the exclusive importer of the brand, who agreed to invest in a new state-of-the-art showroom and after-sales center in the city of Irbil.
Wonder what effect this will all have on the sanctions being talked about to dissuade Iran from their nuclear ambitions?
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