The 19th IRAN International Auto Parts Exhibition

Analysis of Iran's Automobile Market

The Iranian automotive market size is estimated at $37.94 billion in 2024 and is expected to reach $59.93 billion by 2029, growing at a CAGR of 9.57% during the forecast period (2024-2029).

The automotive industry contributes about 10% to Iran's GDP. Iran's total domestic production is dominated by two producers, Iran Khodro and SAIPA, which account for more than 90% of the total domestic production. Iran's automotive industry is dominated by the passenger car sector, which accounts for about three-quarters of the entire market.

During the COVID-19 period, the Iranian automotive market has steadily declined due to the downturn in supply chains and imports and exports caused by the spread of the virus. In addition, the production of the entire automotive industry was stopped, resulting in a sharp decline in car sales during the year. Although as time goes by, 2021 is a year of market transformation, and the entire Iranian automotive industry is formulating new reforms recommended by its ministries. According to OICA, Iranian automakers produced nearly 894,298 vehicles during 2021, with an increase of 2% in production over 2020.

The Iranian government has launched nine strategic projects in the country, which will provide an equal pace for the rapid growth of the industry. Moreover, these projects are more inclined to strengthen Iran's OEMs and automotive parts suppliers to maintain the automotive industry structure and achieve production targets by the end of 2025.

Considering these factors, as well as the government's forefront in promoting the development of Iran's automotive industry, it is expected that automobile sales will remain fruitful during the long-term forecast period.

19th IRAN International Auto Parts Exhibition

The Iranian market is an important market that the auto parts industry focuses on. Recently, Iran held the 19th Auto Parts Exhibition.  TAKUMI was fortunately to join this exhibition to display products, technologies and services, and met local agents who have cooperated to discuss the direction of future cooperation. The exhibition also attracted many agents which never sold Takumi before,they want to know this brand. The next step is to discuss how to better serve the Iranian market and Iranian agents.