logo

Iran Vehicles Market Size (2024 - 2029)

The market size of the automotive industry in Iran is poised for significant growth over the forecast period, driven by strategic government initiatives and reforms aimed at revitalizing the sector. Despite challenges posed by the COVID-19 pandemic, which led to a decline in vehicle sales and production, the industry is expected to recover and expand. The passenger car segment dominates the market, with a substantial contribution to the country's GDP. The government's focus on strengthening original equipment manufacturers and auto part suppliers through strategic projects is anticipated to support the industry's growth trajectory, ensuring a robust market size expansion in the coming years.

Home Market Analysis Automotive Research Vehicles Research Iran Automobile Industry Market Size

Market Size of Iran Vehicles Industry

Iran Vehicle Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 37.94 Billion
Market Size (2029) USD 59.93 Billion
CAGR (2024 - 2029) 9.57 %
Market Concentration High

Major Players

Iran Vehicles Market Major Players

*Disclaimer: Major Players sorted in no particular order

Iran Vehicles Market Analysis

The Iran Vehicles Market size is estimated at USD 37.94 billion in 2024, and is expected to reach USD 59.93 billion by 2029, growing at a CAGR of 9.57% during the forecast period (2024-2029).

The Iranian automotive industry is significant to the country's economy, playing a crucial role in employment, industrial growth, and overall economic development.

The Iranian government has implemented various policies to promote the growth of the automotive industry, including investment incentives, tariff protection, and localized production requirements. These initiatives have attracted domestic and foreign investments, establishing a robust automotive manufacturing ecosystem comprising domestic automakers, joint ventures, and multinational corporations.

Iran's automotive industry encompasses various activities, including vehicle manufacturing, component production, distribution, and after-sales services. The industry is dominated by several key players, including Iran Khodro (IKCO), SAIPA Group, and Pars Khodro, which collectively account for the majority of vehicle production in the country.

Iran Khodro, the largest automaker in Iran, produces various vehicles, including passenger cars, commercial vehicles, and trucks, under various brand names such as Peugeot, Renault, and IKCO. SAIPA Group, another major player, focuses primarily on the production of passenger cars and light commercial vehicles, with brands like Kia, Citroen, and its own SAIPA brand.

In recent years, there has been a growing emphasis on innovation, research, and development within the Iranian automotive industry, driven by the need to enhance product quality, efficiency, and sustainability. Initiatives to develop electric vehicles (EVs), hybrid technology, and alternative fuels reflect a broader commitment to environmental conservation and energy security.

The Iranian automotive industry is witnessing a shift toward digitalization, automation, and connectivity, with automakers and suppliers investing in advanced technologies to meet evolving consumer preferences and regulatory requirements. Digital marketing, online sales platforms, and smart manufacturing processes are becoming increasingly prevalent across the industry value chain.

Considering these factors and the government's leadership in promoting development in Iran's automotive industry, vehicle sales are expected to remain fruitful during the longer-term forecast period.

Iran Vehicles Industry Segmentation

A vehicle is a machine that transports people or cargo from one place to the desired location. The Iranian automotive industry is focused on passenger and commercial vehicles.

The Iranian automotive industry market is segmented by vehicle type and fuel type. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By fuel type, the market is segmented into IC engines and electric.

For each segment, the market sizing and forecast are done in terms of value (USD).

By Vehicle Type
Passenger Vehicles
Commercial Vehicles
By Fuel Type
IC Engines
Electric
Need A Different Region Or Segment?
Customize Now

Iran Vehicles Market Size Summary

The Iranian automotive industry is a significant contributor to the country's economy, accounting for a substantial portion of its GDP. Dominated by major players like Iran Khodro and SAIPA, the industry primarily focuses on passenger vehicles, which make up the bulk of domestic production. Despite challenges such as international sanctions and the impact of COVID-19, the sector has shown resilience and is poised for growth. The Iranian government has initiated strategic projects to bolster the automotive industry, aiming to enhance the capabilities of original equipment manufacturers (OEMs) and auto part suppliers. These efforts are expected to sustain the industry's expansion and meet production targets in the coming years. The market's potential is further underscored by its position as the largest automotive market in the Middle East, with a significant share of the region's vehicle production.

The shift towards alternative fuel vehicles, including hybrid and electric cars, is gaining momentum in Iran, driven by changing consumer preferences and government initiatives. The introduction of domestic electric vehicles, such as KSJ Motors' Oxygen and Iran Khodro's E-Atros hybrid bus, highlights the country's growing self-reliance in the automotive sector. The demand for electric vehicles is anticipated to rise, supported by advancements in charging infrastructure and fast charging technologies. The Iranian automotive market is characterized by strategic alliances and joint ventures, particularly with international manufacturers, to enhance production capabilities and expand market reach. These collaborations, along with the country's focus on domestic production, are expected to strengthen Iran's position in the global automotive landscape.

Explore More

Iran Vehicles Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Escalating Technology Adoption is Driving Market Growth

    2. 1.2 Market Restraints

      1. 1.2.1 Currency Fluctuations Anticipated to Restrain Market Growth

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value - USD)

    1. 2.1 By Vehicle Type

      1. 2.1.1 Passenger Vehicles

      2. 2.1.2 Commercial Vehicles

    2. 2.2 By Fuel Type

      1. 2.2.1 IC Engines

      2. 2.2.2 Electric

Iran Vehicles Market Size FAQs

The Iran Vehicles Market size is expected to reach USD 37.94 billion in 2024 and grow at a CAGR of 9.57% to reach USD 59.93 billion by 2029.

In 2024, the Iran Vehicles Market size is expected to reach USD 37.94 billion.

Iran Automotive Market Report Snapshots

Automotive Industry in Iran Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)