South Korean automakers are expected to suffer as the U.S. government recently announced plans to tighten import restrictions on China.
South Korea imports auto parts from the Chinese market,
which accounts for 40% of its total imports, and the share has been increasing with each passing year.
U.S. quadruples auto tariffs on Chinese-made cars
The restricted imports will support Korean-made electric vehicles even as the US quadruples auto tariffs on Chinese-made autos,
but if the market targets the automobile parts portion of the auto industry, Korean automakers would face a tough time.
Iranian automakers have failed to enter Russia in the past
The entry of Iranian automakers into the Russian market may not be smooth sailing,
as Iranian automakers tried to enter the Russian market from 2007 to 2009 and failed due to low quality.
Despite these concerns, the two countries are pursuing an automotive partnership because both countries are under international sanctions and need to find new markets,
and for the partnership to succeed, Iran will need to compete with Chinese imports and address quality issues.