Iraqi Vehicle Market in 2026 drops in double-digits. Q1 sales fell by 34.3%, with all top brands reporting major losses, with the exception of Nissan which managed to only lose 4.1%, and Jetour which was able to grow 23.9% and rose into 6th.
Economic Environment
2026 forecasts indicate a sharp economic contraction of about 6.8% for Iraq, driven by heightened regional tensions, volatility in global oil markets, and disruptions linked to energy supply routes such as the Strait of Hormuz. Despite higher oil prices, gains are expected to be offset by rising import costs and inflationary pressure, which will strain household purchasing power and push up the cost of essential goods and services.
The outlook also highlights the risk that prolonged geopolitical escalation could lift oil prices above $110 per barrel, complicating global inflation control and tightening monetary conditions. This marks a significant reversal from earlier expectations of steady growth of around 3–4% in the following years.
Automotive Industry Trend And Outlook
Following on the trend of contraction that defied the prior year, the Iraqi’s vehicle marekt continue to dip. Q1 sales fell by 34.3% to 30, 838 units.
Brand-wise, the leader was Kia with a share of 23.3% despite losing 41.4%. Toyota ranked into 2nd, down by 32.8% to a 23.2% share while Nissan -up 2 spots- ranked in 3rd (-4.1%).
Notably, Jetour in 5th gained 23.9% and climbed up 1 spot to a 7.7% share. .
Looking at specific models the Toyota Hilux was still the leader despite losing 34%. The Kia Sorento ranked 2nd, down by 34.7% while the Kia Frontier dropped 1 spot into 3rd, falling by 37.2%.
EV Market Trend And Outlook
Iraq’s EV sector is navigating a transitional stage in 2026, having to deal with grid limitations and expansion to non-urbanized areas. Moreover, the broader automotive outlook slowed down segment’s growth, which fell by 79.3% in Q1 of 2026 to a share of about 1%.
Toyota was still the leader, holding a 90.1% share despite losing 80.6%. Lexus ranked 2nd, down by 37.9% to a 5.9% share.
Medium-Term Market Trend
Iraq’s automotive market saw a major collapse during 2015–2016 amid the ISIS conflict, with sales falling by 41.3% and then 46.8%, dropping below 40,000 units at the trough. A recovery started in 2017 but was briefly disrupted in 2020 by COVID-19, which caused a 16.9% decline.
Momentum returned strongly from 2021 onward, with growth of 26.7% in 2021, 23.9% in 2022 (reaching 107,880 units), followed by further gains of 22.1% in 2023 and 27.7% in 2024, hitting 158,076 units. EV adoption remains limited at 2.5% of sales in 2024, reflecting ongoing structural constraints such as oil dependence and weak charging infrastructure.
Tables with sales figures
In the tables below we report sales for top 10 models.
