Automotive industry of Iran

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The Iranian automotive industry is the third largest industry in the country after the oil and gas industry, contributing 10% to Iran's GDP and 4% to employment (700,000 people). In 2018, Iran was the 18th largest automaker in the world and one of the largest in Asia with an annual production of more than one million vehicles.

Production development

The Iran developed a significant automotive industry with an annual production of up to 200,000 units under the regime of Mohammad Reza Pahlavi . After the Iranian Revolution of 1979, production dropped drastically due to the First Gulf War and international sanctions . In the early 2000s, automobile production in Iran grew exponentially. Iranian automobile production passed the 1 million mark in 2007/2008. In 2009, Iran ranked fifth in terms of car production growth, behind China , Taiwan , Romania and India . According to OICA statistics, production fell dramatically to below 750,000 cars and commercial vehicles by 2013. By 2017, the production output had doubled to over 1.5 million. In 2018 it fell again to below 1.1 million as a result of the cancellation of the nuclear agreement by the United States .

Manufacturer

In 2001 there were 13 public and private automobile manufacturers in Iran. In 2018, a good 90% of total domestic production came from the state-run companies Iran Khodro and Saipa . Iran Khodro is the most widely used car brand in the country and one of the largest automakers in Asia.

Iranian manufacturers currently produce six different types of vehicles, including cars, four-wheel drive vehicles, trucks, buses, minibuses and pick-ups. The sector directly employs around 500,000 people (around 2.3% of the workforce) and others in related industries. Passenger cars account for around 75% of local production, while pick-ups are the next largest category at 15%.

Individual evidence

1. ↑ OICA: 2018 Production Statistics (Eng.)
2. ↑ OICA: Production Statistics Overview (Eng.)
3. ^ For Iran's Economy, the Price of a Car Matters More Than the Price of Oil. November 7, 2018, accessed July 8, 2019 .