Rewritten Title: Policy Uncertainty and Economic Factors Drive Volatility in Iran’s Automotive Market
Article:
A snapshot of Iran’s automotive market reveals a sector grappling with significant price volatility and uncertainty. The latest price list, published on October 22, 2025, highlights a market caught between conflicting pressures, where both domestic and imported-assembled vehicles are experiencing sharp price swings. This instability presents a complex challenge for both manufacturers and consumers, reflecting broader economic conditions.
A Market in Flux
The Iranian car market is currently characterized by a state of stagnation-inflation, where the volume of real transactions has decreased, yet prices continue their upward trend. This difficult environment is driven by a combination of internal and external factors, making decision-making particularly challenging for market participants.
A key source of uncertainty stems from ongoing deliberations over vehicle import policies and the final pricing of these goods. This ambiguity has clouded the outlook for market supply. Simultaneously, domestic automakers continue to face challenges in establishing equilibrium between supply and demand, partly due to pricing mechanisms and the irregular supply of popular models.
Consequently, many genuine buyers and sellers are adopting a wait-and-see approach, holding out for more stable economic policies and clearer signals from the market before making commitments.
Domestic Models See Mixed Fortunes
The prices of domestically manufactured vehicles have experienced major fluctuations. The automatic “Shahin Plus” saw the largest gain in this category, rising by 25 million tomans to reach 1.49 billion tomans. The manual “Tara V1” also saw a significant increase of 22 million tomans, trading at 1.157 billion tomans.
However, not all models followed this upward trajectory. The “Shahin Automatic G” saw a modest decline of 2 million tomans, priced at 1.214 billion tomans. The “Soren Plus Bi-Fuel” model experienced a more notable drop of 10 million tomans, with its price settling at 975 million tomans.
Selected Domestic Car Prices (in Tomans):
- Soren Plus Bi-Fuel: 975 Million
- Dena Plus Automatic: 1.37 Billion
- Peugeot 207: 1.107 Billion
- Tara Manual V1: 1.157 Billion
- Shahin Automatic Plus: 1.49 Billion
Imported & Assembled Vehicles Follow Suit
The segment for imported and assembled cars displayed even more pronounced volatility. The “Haima 8S” led with a substantial price increase of 80 million tomans, reaching 2.68 billion tomans. In contrast, the “Changan CS55” saw a decrease of 10 million tomans, trading at 3.1 billion tomans.
Products from Kerman Motor showed mixed results, with models like the “KMC Eagle” rising by 37 million tomans and the “JAC J4” increasing by 28 million tomans. Conversely, the “KMC A5” experienced a significant drop of 40 million tomans. Similarly, despite recent announcements of price hikes from Bahman Motor, some of its models, such as the “Respect 2” and the “Dignity Prestige,” saw declines of 22 and 20 million tomans, respectively.
Selected Assembled Car Prices (in Tomans):
- KMC Eagle: 1.39 Billion
- JAC J4: 1.27 Billion
- Haima 8S: 2.68 Billion
- Changan CS55 Plus: 3.1 Billion
- Tigo 8 Pro Max: 3.95 Billion
Long-Term Outlook
Despite the current turbulence, a long-term perspective among market players indicates that vehicles continue to be viewed not just as consumer goods, but also as a means of investment and a tool for preserving asset value. Analysts suggest that if broader macroeconomic factors find a new equilibrium, the automotive market is likely to move towards greater stability and calm in the future. For now, the market remains a key indicator of the country’s evolving economic landscape.