Flash Reports

Iran -car industry outlook

During last 6 years, United Nations Security Council passed several resolutions, requiring Iran to suspend its uranium enrichment and reprocessing activities and to comply with its IAEA obligations. However the country is continuing the development of nuclear program.

Purchase power adjusted GDP at $ 929 billion in 2011 is in line with the country global dimension being the 18th globally. The increase rate in last years has been around 3%. However, the pro capite income of $ 12.200, the unemployment rate at 15%, the inflation rate at 22% and income distribution index are showing existence of high inequalities.

Car industry has been seen by the Government as a fundamental driver for economic development and the local production shored an outstanding growth during last decades. Car passenger production was at 278.000 units in the 2000 flying to a 2011 all-time record of 1.648.000, 2.1% of global production, allowing Iran to rank as 13th global car producer.

Vehicle production is based on old models (like Peugeot 206) built thanks to the purchase of dismissed Western European or Korean facilities.

There are not official data about domestic market, but we estimate that at least 25% of production is exported in CIS and Middle East countries, projecting annual domestic market at 1.1 million units.

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