The cheapest Iranian car is priced at 400 million tomans.
Since 2019, we have witnessed a downward trend in the purchasing power of Iranian consumers in all sectors, including the car market. This trend continued in 2023, worsening conditions and further eroding the purchasing power of Iranian consumers. Nowadays, to buy the cheapest Iranian car from the open market, you need more than 400 million tomans in cash, whereas with the same amount less than four to five years ago, you could purchase a semi-luxury imported car.
Not only is the new car market in Iran chaotic, but this chaos also extends to the second-hand car market. Due to the reduced purchasing power of consumers, the demand for second-hand cars has increased. Since the number of available second-hand cars in the market is limited, the increased demand will lead to higher prices for these cars.
Promises such as importing 100 or 200 thousand cars annually, producing economical and inexpensive cars, and importing used cars have remained merely dreams. Even car manufacturers have not been able to bring the new products they introduced to the market. Cars like Saipa Aria, Kadila Shahin Plus, IKCO Rira, and the Iranian version of Renault Kwid remain just ideas, with no sign of them in the market yet.
The situation with the production of previous cars is also not favorable. Since the re-imposition of sanctions, car manufacturers have not managed to align their production levels with market demand. Consequently, a portion of the demand remains unmet, forcing consumers to turn to the open market to find their desired options. The current market conditions are such that purchasing the cheapest new Iranian car, the Quick S, requires more than 400 million tomans in cash. It is obvious that with a base salary of 8 or even 10 million tomans, gathering 400 million tomans in cash will not be an easy task for the Iranian consumer.