Latest News- Automobile Market in Iran (Islamic Republic of Iran): Passenger vehicles is expected to lead the Vehicle Type segment during 2025-2029

The Automobile Market in Iran (Islamic Republic of Iran) is being driven by Growing technological advancements in automobile industry

The Automobile Market in Iran (Islamic Republic of Iran) is expected to grow at a CAGR of 11.3% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 26931.2 million. The Iranian automotive market is experiencing a significant increase in demand for electric vehicles (EVs), driven by a combination of government incentives, environmental concerns, and technological advancements. The Iranian government's initiatives, such as the Iran National Auto Loan scheme, offer financial incentives to both buyers and producers, making EVs more financially attractive. Additionally, the reduction of the goods and services tax (GST) on EVs has further decreased their cost-effectiveness compared to traditional vehicles. The uptake of EVs is also influenced by growing environmental awareness, as concerns over air pollution and greenhouse gas emissions continue to mount. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Vehicle Type
  • Passenger vehicles
  • Commercial vehicles
• Type
  • Conventional
  • EV
• Class Type
  • Economy
  • Premium
• Geography
  • Iran (Islamic Republic of Iran)

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing technological advancements in automobile industry
• Increasing government initiatives and policies for easy automotive industry setup procedure
• Increased production activity in Iran for auto parts and components

However, the market also witnesses some limitations, which are as follows:

• Rising raw material cost for automobiles in Iran
• Low access to international automobile markets
• Impending magnesium storage challenging automobile manufacture

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Market Scope in Automobile Market in Iran (Islamic Republic of Iran) Research Report

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Research Analysis Overview

In the Islamic Republic of Iran's automobile market, various sectors face disruptions due to construction activities. The packaging industry explores green alternatives, recycling, and innovative materials like graphite for thermal insulation, IR light reflection, and improved mechanical properties. Building materials such as lightweight insulation products, thermoplastic polystyrene beads, and eco-friendly alternatives are in demand for walls, roofs, and floors in residential and non-residential construction. Housing renovation and maintenance costs are significant considerations, with value-added construction focusing on energy efficiency, eco-friendliness, and recyclability. Key areas include Vancouver Granville, Keith Drive, and False Creek Flats in British Columbia, where construction of external walls, roof systems, formwork, and lightweight building blocks continues. Industries like automobile manufacturing, food service, appliance housings, envelope windows, wind turbine parts, and automobile body panels benefit from these advancements.

Market Research Overview

The automobile market in the Islamic Republic of Iran encompasses manufacturers producing passenger cars, commercial vehicles, and all-terrain vehicles, as per the parent global market definition. Notably, this sector excludes motorcycle, scooter, e-bike, trike, and three-wheeler manufacturers. According to Technavio, market expansion will be driven by the integration of advanced features, such as electronic components, enhanced safety systems, autonomous capabilities, emission standardization, and improved fuel efficiency through electronic fuel control, all of which contribute to increased consumer demand for vehicles. Additionally, vehicle customization is a significant factor fueling market growth. Construction activities and supply chain disruptions may pose challenges, while the packaging sector presents opportunities for innovation in sustainable and eco-friendly solutions.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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