Iranian Vehicles Market in 2024 declined 4.7% in 2024, reversing three years of growth. Among a struggling top 10, only Changan (8th) and KMC (9th) saw gains, with KMC delivering the strongest performance.
Economic Environment
Iran’s economy remains in crisis, with inflation exceeding 30%, the Rial depreciating sharply, and nominal GDP expected to drop below $400 billion by March 2025. Economic growth is projected at 2% for the current year, but structural issues like budget deficits, electricity shortages, and financial instability continue to weigh on performance. While the service sector remains a key source of resilience, youth unemployment remains high, and inflation is eroding economic potential.
The government is prioritizing sanctions relief through diplomatic engagement and considering fuel subsidy reforms to address budgetary pressures, though concerns over social unrest complicate implementation. With ongoing geopolitical uncertainties and economic mismanagement, Iran’s near-term outlook remains fragile, with risks of further instability if key reforms are not effectively executed.
Automotive Industry Trend And Outlook
Iran’s vehicle market declined by 4.7% in 2024, following three months of growth and briefly surpassing the one-million-unit treshold for the first time since 2018.
Looking at full-year data for 2024 brand-wise, the leader was still Saipa, despite losing 1%, followed in 2nd by Peugeot, down 7.4%, and in 3rd by Iran Khodro, down 1.5%. ZAMYAD followed in 4th with the most significant loss in the Top 10 at -35.2% while Haima ranked 5th dropping 12.3%.
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 Models
