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According to Khabar Khodro, recently while it was announced that one of the brands of French PSA hits Iran market, activists in low boom auto market of Iran were surprised by such a risky decision. Young DS brand that is going to have the role of luxury and sport arm of Peugeot-Citroen reaches Iran when there is no clear image of the brand in mind of audiences.
While reports show that 10 percent of imported vehicles in Iran are premium or semi-luxury, goal of DS dealership here is to achieve 20 percent of semi-luxury market share so it would enter a serious competition with brands that have vehicles with same price tag. In addition, luxury market in Iran is dedicated to vehicles that are more popular in American market while Yves Bonnefont, DS CEO that has come for opening central showroom of this brand in Iran said that last year the company has produced 102000 units of vehicles, 79 percent of which were sold in Europe and 21 percent were sent to countries in south America such as Brazil.
It is reported that importers of this brand would launch DS-4, DS-3 and DS-5 models in low boom Iran market and even they have talked about DS-6. DS models have different types and options that exist in Europe but it is expected that many of them would not be available in Iran market.
DS is set to be the sport and rich brand of Peugeot-Citroen in Iran while both French automakers do not have a good image in mind of Iranian costumers. It is a long time that Peugeot has not offered new and hot product in Iran market and Citroen has offered C5 in its last try that was not successful. Today, owners of Peugeot 407 and Citroen C5 are wishing to not face breakdown as spare parts of these vehicles are rare and technical support for them are weak.
DS is an unknown and new brand in Iran market and it seems that importers are not willing to relate it to Peugeot and Citroen as parent brands.
The other challenge for DS in Iran market would be its position in costumers’ shopping cart. While this market is not welcomed even with low price vehicles, it seems that a new brand with a price tag between 150 to 300 million toman would not have an opportunity to attract many customers. Now some of the dealerships of foreign brands are dealt with such a problem and as the result they are in difficulty to offer accurate services to their customers. Even it is believed that DS would not have any luck as compared to used German or Japanese vehicles as most of them are famous between Iranian buyers as idioms.
DS has entered a segment in market that is dedicated to German, Japanese and Korean brands and even brands such as Volvo could not take it from Mercedes Benz, BMW, Toyota and Lexus.
DS would face many challenges that some of them are ambiguous and concealed in complex auto market of Iran.
