BMI Industry View

Iranian vehicle production rose by 67.5% in 2014, to 1,090,846 units, according to statistics from the International Organization of Motor Vehicle Manufacturers (OICA). Breaking down the headline figure, Iran produced 925,975 passenger cars and 164,871 commercial vehicles. This makes Iran the 18th largest auto producer in the world.

At the present time, sentiment towards the Iranian auto industry remains dominated by the progress of ongoing negotiations between Iran and the P5+1 countries (the US, Russia, China, France, Britain and Germany) over Iran's nuclear programme. The two sides have until June 30 2015 to reach a permanent agreement. During this time, Iran will continue to receive around USD700mn a month from its frozen accounts, although key international sanctions on its energy and banking sector will remain in place.