Automotive Industry in Iran, a short review
Asre Khodro - Iran has the largest automotive industry in the Middle East, and it is the country's second-largest economic sector (after oil and gas), currently accounting for 10% of GDP and 4% of employment.
Monday 29 January 2018 - 19:45:00
Reporting "asre Khodro", It has been deemed a priority industry by the Iranian government over the past 15 years and was growing strongly until it went into a dramatic slump in 2012-13 as international sanctions affected companies, consumers and foreign investors.
Production rose sharply in 2014 as the economy recovered, but then declined again in 2015. A landmark nuclear deal was reached with major international powers, and many sanctions were lifted in January 2016. With GDP growth accelerating, Iran's vehicle output increased by 18.6%, to 1.2m units.
The new car market rebounded strongly in 2016 after a dip in 2015, and The Economist Intelligence Unit expects another jump this year. This will be followed by more moderate growth that will nevertheless push sales to repeated all-time highs. During the 2017-21 forecast period as a whole, we expect car sales to report a compound annual growth rate (CAGR) of 9%. GDP growth is expected to average 5.6% a year during the same period.
Iran automotive marketIran Automotive IndustryIran KhodroIKCOSaipa