Iran’s Automobile Market in 2024

Iran’s automobile production in 2024 fell by 1.1% compared to the previous year, sinking to 1,077,839 units. Amid ongoing economic sanctions imposed by Western nations, financial and export controls have been successively tightened from April 2024, making automobile production increasingly difficult. Iran Khodro (IKCO), a major local manufacturer, ceased production of its core product, the Peugeot Pars (a derivative model of the Peugeot 405), around spring 2024. This was reportedly because the production license was not renewed as the model did not comply with safety standards that became mandatory in Iran in 2019. One contributing factor to the delay in switching to new models is that economic sanctions have made it difficult to procure advanced vehicle technologies and electronic control components.