Iranian Vehicles Market in September 2024 fell for the 9th consecutive month, reporting 72,879 new registrations. YTD figures at 705,973 were down 15.9% compared to the prior year.
Car Market Trend and Outlook
In 2024, Iran’s economy is projected to grow at a rate of 1.9%, following a modest growth of around 2% in 2023. Despite challenges such as persistent high inflation, currently hovering around 50%, and significant political opposition to the current administration, sectors like energy continue to drive growth.
The International Monetary Fund (IMF) indicates improvements in key economic indicators, but this optimism hinges on geopolitical factors and potential changes in US sanctions. Environmental issues, particularly climate change-induced droughts, pose significant challenges, leading to increased migration and strain on resources. Overall, while there are opportunities for growth, Iran faces a complex landscape of economic and environmental hurdles that could impact its trajectory.
The automotive industry is the second most important – after the oil – in the country and in the past, over 15 years ago accounting for over 1.5 million sales per year. However, due to the economic difficulties, sanctions and low pro-capita income, it stands now around 1 million per year.
Local manufacturers control the industry while Chinese OEMs have recently replaced Western companies which left the country after the last sanction tour.
Iran’s vehicle market in September 2024 fell for the 9th consecutive month, reporting 72,879 new registrations. YTD figures at 705,973 were down 15.9% compared to the prior year.
Looking at cumulative data up to September 2024, the Market leader was Saipa, with 245,410 sales (-28.6%) and a 34.7% market share, followed by Iran Khodro -up 1 spot- with 209,900 new registrations (+12.4%) and Peugeot -down 1 spot- at 169,717 sales (-31.6%).
In 4th ranked Zamyad with 56,181 new registrations (+61.9%), in front of Haima at 15,234 sales (+7.2%) and Chery, which reported 5,780 units sold (-21.1%).
Medium-Term Market Trend
Considering the huge local production and Iranian rule in the Middle East, the Iranian automotive industry would be one of the Top 15 in the World. However, the diplomatic war against Western countries with reiterated sanctions, has disrupted the industry in recent years.
Following the 2014 Ginevra agreement, which allowed the stop of sanctions, the car market boomed by over 1.5 million. However, when President Trump decided to ignore that agreement, reaffirming the sanctions status unilaterally, the domestic economy was hit and so was the car market.
The market lost volume by double digits in 2018 and 2019, reaching 793,891 total sales by the end of 2019 (-33.5%).
The pandemic didn’t affect vehicle sales in Iran, on the contrary, the light vehicle sales surged 14.1% in 2020 to 905,643. In 2021 new vehicle registrations remained relatively flat, but in 2022 the market gained another 15.2% finally rising above the 1 million mark.
Tables with sales figures
In the tables below we report sales for Top 10 Brands
