Iraqi Vehicle Market in 2024 grew 27.5%, extending its five-year streak. Toyota and Kia led with a third of the market, while Suzuki and Jetour saw the fastest growth.
Economic Environment
Iraq’s GDP growth is projected to slow as oil production cuts weigh on revenues, with output expected to decline to 3.97 million barrels per day in 2024 before rising in 2025. The budget deficit is set to widen to 8% of GDP this year and average 12.4% through 2026, driven by rising wages and pension transfers ahead of the 2025 elections.
Government debt is expected to climb to 47.7% of GDP in 2024, with most financing coming from the Central Bank of Iraq, though strong foreign reserves provide a buffer against external shocks. Political and security risks remain high, with ongoing regional tensions and domestic instability ahead of elections, while scrutiny of Iraqi banking transactions is pressuring the parallel exchange rate.
Automotive Industry Trend And Outlook
Iraq’s EV market surged 164% in 2024, reaching 2.42% of total vehicle sales. Though still a small share, the country is expected to advance toward reducing fossil fuel reliance.
Toyota dominated the segment, holding over 90% of EV sales, far ahead of Lexus and Land Rover.
Overall, Iraq’s vehicle market maintained its strong momentum, reflecting positive economic sentiment and sustaining decade-high peaks.
Looking at full-year data for 2024 brand-wise, the leader was Toyota -up 1 spot- which grew 35.9%. Kia ranked in 2nd, up 12.7% while Hyundai in 3rd gained 36.2%.
MG in 4th showed little to no growth, up 0.8% while Suzuki in 5th posted one of the most significant gains in the top 10, up 120.9%.
Looking at specific models the Toyota Hilux became the best seller while gaining 49.1% in year-on-year sales, followed by the Kia Frontier, down 1.3%.
Medium-Term Market Trend
The internal war against ISIS and the consequence for the economic and social aspects, pushed down the Iraq automotive industry in 2014-2016, after a period of sustained growth.
The market peaked down in 2016 with sales below the 40K, but since 2017 a long term growth in place.
Indeed in 2020 the pandemic arrival breaked the growth with sales down 16.7%, but it was a temporary stock and since 2021 the market is back on track.
Sales, in fact, in 2022 grew 26.7% to 107,990, the highest level of yearly volume in the last 8 years.
Tables with sales figures
In the tables below we report sales for top 10 models.
