Overview of Iran’s Automobile Market in 2022

Iran's automobile production in 2022 increased by 49.6% from the previous year to 1.348 million units, exceeding 1 million units for the first time in four years and the third highest level on record. Based on this, Iran's Ministry of Industry, Mine and Trade has revised its automobile industry strategy for 2023. According to media sources sales are expected to be around 1.8 million units.

At the end of May 2022, Iran lifted ban on car imports for the first time in three years. In addition to filling the Iranian government's estimate of a shortfall in domestic demand of 1.5 million vehicles per year, the plan is to control the ever-soaring prices of automobiles by having the country control imports. However, the plan to import 200,000 units per year is not progressing as expected due to a lack of foreign currency and delays in procedures among other issues. On the other hand, Iran plans to focus on exporting automobiles to capture demand for inexpensive B-segment cars, with plans to export to Russia and Venezuela. Car exports are likely aimed at acquiring foreign currency.