Please Wait.....
Report
Iran Vehicles - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)
Market Report I 2026-01-16 I 110 Pages I Mordor Intelligence
Iran Vehicles Market Analysis
The Iranian vehicle market size in 2026 is estimated at USD 43.86 billion, growing from 2025 value of USD 41.57 billion with 2031 projections showing USD 57.31 billion, growing at 5.5% CAGR over 2026-2031. Demand momentum is tied to robust domestic production of vehicles in 2023, wider policy support for compressed natural gas (CNG) vehicles, and a gradual reopening to foreign joint ventures. Competitive intensity remains moderate because the top two domestic manufacturers together control almost 80% of sales. Power-train diversification, ride-hailing growth, and barter-based supply-chain fixes are shaping investment priorities while currency volatility and electricity-grid constraints temper near-term optimism.
Iran Vehicles Market Trends and Insights
Government push for CNG-compatible powertrains
Authorities target a 35% CNG share of national fuel use, up from 23%, and have mandated that half of new vehicles integrate CNG functionality. Domestic automakers already field 3.5 million CNG vehicles supported by 2,385 active stations, a network the oil ministry is expanding. Stable CNG pricing relative to rising gasoline costs underpins consumer uptake, while Iran's vast natural-gas reserves ensure supply security. The CNG pivot enhances energy independence, claws back gasoline imports, and positions manufacturers for export opportunities to other gas-rich economies.
Re-opening of selected JVs after 2023 sanctions waivers
Sanctions relief rekindled foreign partnerships, exemplified by Renault's 150,000-unit plant and Mercedes-Benz Trucks' after-sales accord. These collaborations inject advanced power-train know-how, raise quality standards, and unlock idle capacity precisely as a quarter of Iran's fleet exceeds 20 years in age. Technology transfer and global supply-chain access are accelerating platform modernization across the Iran automotive market.
FX-driven parts import shortages
Component inflows fell to USD 653 million in 2024 and briefly collapsed to USD 26 million, forcing intermittent shutdowns. Domestic suppliers lack scale in engines and electronics, so OEMs depend on foreign currency allocations that remain constrained. Extended delivery lead times dent consumer confidence and dilute the Iranian automotive market's growth pace.
Other drivers and restraints analyzed in the detailed report include:
Subsidy-backed demand for small passenger carsAutomakers' barter trade unlocking production linesChronic currency depreciation inflating prices
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
Passenger cars, particularly sedans, retained a 52.05% share of the Iranian vehicle market in 2025, underpinned by urban commuting needs and well-established domestic platforms. Legacy models such as Iran Khodro Samand and SAIPA Tiba deliver familiar serviceability and low operating costs. The segment is growing at an 11.05% CAGR on the back of government programmes to deploy 100,000 electric taxis and expanding public charging corridors. The sedan segment, therefore, faces an evolutionary pivot toward electrified variants, while light commercial vehicles ride the surge in ride-hailing and last-mile delivery. Sport utility and multi-purpose vehicles remain aspirational choices for an emerging middle class.
Platform updates reflect a strategic shift to designs that accommodate multiple fuel types and enhanced safety features, replacing legacy models whose production has recently been halted. Manufacturers are retooling lines for flexible body-on-frame architectures aimed at both passenger and commercial derivatives. The Iranian vehicle market also sees bus and coach renewal programmes that retire aging diesel fleets in favor of CNG and hybrid units, supporting public-transport modernization initiatives.
Gasoline vehicles still command 67.10% of Iran's vehicle market share in 2025 because refinery output satisfies most domestic demand, and subsidies keep pump prices low. Nevertheless, the Iranian vehicle market size for hybrid models is projected to climb rapidly at 12.55% CAGR, alongside policy mandates stipulating that half of annual production include alternative power-trains. Grid bottlenecks and a lack of fast chargers slow pure-battery adoption, but hybrids circumvent range anxiety while cutting fuel bills.
Hybrid uptake is accelerated by looming gasoline deficits that could force USD 2 billion in imports annually if consumption outpaces refinery upgrades. The government's green-fleet targets and approval of premium gasoline imports at market rates encourage consumers toward fuel-efficient technology. Diesel vehicles remain essential for heavy freight, whereas CNG usage leverages Iran's abundant natural gas, helping stabilize fuel security.
The Iran Vehicles Market Report is Segmented by Vehicle Type (Passenger Cars [Hatchback, Sedan, and More], Light Commercial Vehicles, and More), Fuel Type (Gasoline, Diesel, Hybrid Electric, and More), Ownership (Domestic Brands and Imported Brands), and Customer Type (Individual Consumers, Fleet and Commercial Operators, and More). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).
List of Companies Covered in this Report:
Iran Khodro SAIPA Group Bahman Group Kerman Motor Chery (MVM) Hyundai Motor Kia Corporation Toyota Motor Renault Pars Nissan Motor Dongfeng Motor AMICO
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Government push for CNG-compatible powertrains
4.2.2 Re-opening of selected JVs after 2023 sanctions waivers
4.2.3 Subsidy-backed demand for small passenger cars
4.2.4 Automakers' barter trade unlocking production lines
4.2.5 Ride-hailing fleets driving LCV demand
4.2.6 Military demand for locally-armoured pickups
4.3 Market Restraints
4.3.1 FX-driven parts import shortages
4.3.2 Chronic currency depreciation inflating prices
4.3.3 Power-grid shortfalls delaying EV charging rollout
4.3.4 Pistachio-price backlash vs barter schemes
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
5 Market Size and Growth Forecasts (Value in USD and Volume in Units)
5.1 By Vehicle Type
5.1.1 Passenger Cars
5.1.1.1 Hatchback
5.1.1.2 Sedan
5.1.1.3 Sport Utility Vehicle
5.1.1.4 Multi-Purpose Vehicle
5.1.2 Light Commercial Vehicles
5.1.3 Medium and Heavy Commercial Vehicles
5.1.4 Buses and Coaches
5.2 By Fuel Type
5.2.1 Gasoline
5.2.2 Diesel
5.2.3 Hybrid Electric
5.2.4 Battery Electric
5.2.5 Other
5.3 By Ownership
5.3.1 Domestic Brands
5.3.2 Imported Brands
5.4 By Customer Type
5.4.1 Individual Consumers
5.4.2 Fleet and Commercial Operators
5.4.3 Government and Defense
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (Includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, SWOT Analysis, and Recent Developments)
6.4.1 Iran Khodro
6.4.2 SAIPA Group
6.4.3 Bahman Group
6.4.4 Kerman Motor
6.4.5 Chery (MVM)
6.4.6 Hyundai Motor
6.4.7 Kia Corporation
6.4.8 Toyota Motor
6.4.9 Renault Pars
6.4.10 Nissan Motor
6.4.11 Dongfeng Motor
6.4.12 AMICO
7 Market Opportunities and Future Outlook
7.1 White-space and Unmet-Need Assessment
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security