Products Description
According to Al Jazeera, while domestic tensions in Iran have eased, car prices keep climbing. Driven by exchange?rate volatility, import curbs, supply shortages and inflation expectations, purchasing a vehicle has become increasingly unaffordable for ordinary households. Many citizens have given up buying cars amid sharp price hikes, as the purchasing power of their savings has nearly halved.
New vehicles in the local market now generally cost more than $10,500, and even the cheapest domestically?produced models exceed that threshold. Prices have surged drastically over the past six months, with some assembled and imported car models seeing price increases of over 150%.
Meanwhile, rising car prices have not translated into better vehicle quality or after‑sales services in Iran. Consumers widely complain about poor build quality, high fuel consumption and inadequate repair support.
Industry insiders note that the market crisis stems from more than just rising costs; its root cause lies in long‑term lack of competition. Restricted imports and scant domestic competition leave consumers with few vehicle options, while local automakers have little incentive to upgrade their products and services.
Iran's two major domestic automakers, SAIPA and IKCO, have both raised prices. Coupled with a stronger US dollar, market forecasts suggest car prices will keep climbing.
The supply side is also under heavy pressure. Senior executives at Iranian automakers reveal that domestic vehicle supply fell by 20%‑30% year‑on‑year between March and June this year. This is mainly due to the government's cut in foreign‑exchange quotas for the auto sector, which has blocked imports of both components and complete vehicles. Total domestic car output for this year is projected at only 1‑1.1 million units, far below the historical peak of 1.7 million units recorded in 2012.
Nevertheless, positive signals have emerged: Iran has relaxed registration for car imports. Should import approvals be further liberalized, diplomatic breakthroughs be achieved and frozen overseas funds be unfrozen, vehicle supply is set to rise and car prices may gradually stabilize.