Yearly car production in Iran to hit 1.7M by next March

2024-11-12 08:17:34

(MENAFN) Iran’s industry minister, Abbas Aliabadi, has announced that car production in the country is projected to reach 1.7 million units by the end of the current calendar year, which concludes on March 20, 2025. Speaking on Monday, Aliabadi revealed that Iranian automotive companies had manufactured a total of 1.335 million cars in the year leading up to March 2024.

This consistent increase in domestic car production has enabled Iran to improve its position in the global ranking of car-producing countries, moving up to 16th place from 18th over the past two years. Aliabadi expressed optimism that Iran would climb to the 15th position if production targets are met this year.

The car manufacturing sector in Iran has become a significant contributor to the economy, with employment in the sector reaching 0.9 million jobs. This industry is currently responsible for 12 percent of the country's economic added value. The increase in domestic car manufacturing has been a strategic response to the growing demand within the country, particularly in light of sanctions that have necessitated a shift in import priorities.

In an effort to address soaring car prices, authorities last year began to ease some of the restrictions on car imports that had been in place since 2020. The rise in domestic car output has also allowed Iranian carmakers to diversify their models and accelerate their electrification plans. Aliabadi emphasized that electrification is seen as the ultimate solution to Iran’s escalating gasoline consumption, which has surpassed 120 million liters per day. To support this transition, approximately 3,000 new charging points for electric vehicles are expected to be available across Iran by the end of the current calendar year.

The International Organization of Motor Vehicle Manufacturers (OICA) reported that Iran’s car production reached 1.188 million units in 2023, marking a 12 percent increase compared to the previous year and securing the 16th position in global car production rankings.

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