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Iraq Autos Report Q1 2014

Iraq Autos Market: New market analysis released

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2014-02-07 22:53:03 - Iraq Autos Report Q1 2014 - a new market research report on

BMI sees the potential for more intense competition in Iraq´s commercial vehicle segment on the back of increased investment activity in domestic production, mostly due to the State Company for the Automotive Industry (SCAI)´s plan to begin production of Renault trucks in 2014. This is because we have seen the bulk of recent investment projects in the commercial vehicle segment, and we believe this will serve to intensify competition in the truck market. It is already a segment attracting interest owing to demand from the country´s reconstruction project. Investment in local production shows not only a commitment to the market, but also a keenness to increase the competitiveness of vehicles.

In addition to the upcoming Renault production line, other substantial investment



projects have come from Sweden´s Volvo Trucks. As part of its regional strategy to increase Middle East sales by 30% by 2020, Volvo has opened two service centres in cooperation with its local distributor ZamZam Spring. The two centres will be followed by a production line in Iskandariyah with an annual production capacity of 5,000 units. According to Volvo Trucks, the new facilities are funded and owned by ZamZam and will be operated by SCAI, which falls under the Ministry of Industry. This will give the company better access to government fleet sales, which make up the majority of new truck sales in the country.

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