Market Size of Iran Vehicles Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
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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 automobile industry contributes around 10% to the GDP of Iran. The total domestic production in Iran is dominated by two manufacturers, namely Iran Khodro and SAIPA, which account for more than 90% of the total domestic production. Iran's automobile industry is dominated by the passenger car segment, and it accounts for roughly three-fourths of the total market.
During COVID-19, the vehicle market witnessed a steady decline in Iran after the supply chain and imports & exports were muted amid the virus spread. In addition, the complete auto sector production was halted which exhibited a steep decline in vehicle sales during the year. Although, as time passed, 2021 was the market as the year of transition where the complete auto sector of Iran was under development of new reforms suggested by its ministries. According to OICA , Iranian automakers nearly produced 894,298 vehicles during the period of 2021 to register two percent increase in its production compared to 2020.
The government of Iran has introduced 9 strategic projects in the country which will provide an equivalent pace to the industry's rapid growth. Moreover, the projects are much inclined towards strengthening the OEM and auto part suppliers in Iran to maintain the structure of the automotive industry and to achieve production targets till 2025 end.
Considering these factors, and government's forefront in upbringing the development in Iran's auto sectors, vehicle sales are expected to remain fruitful during the longer-term forecast period.
