The production of domestic vehicles (including heavy, commercial and passenger cars) reached 1.348 million in the fiscal 2022-23 (ended March 21), registering a 40% growth compared with the previous year, according to the Ministry of Industries, Mining and Trade’s Automotive Industry Office.
“The highest growth in car production in the last 12 years was recorded in the fiscal 2014-15 and fiscal 2022-23. The only difference in car output in those years is that the assembly of completely knocked down products was undertaken by Iran’s two largest car manufacturers in the fiscal 2014-15,” Abdollah Tavakkoli Lahijani was also quoted as saying by IRNA.
Noting that 105,000 unfinished cars were completed in the previous fiscal year, he added that the production of complete cars by the two largest carmakers stood at 961,000 vehicles during the period, registering a 479% growth compared with the previous year.
“In the past year, 95% of the vehicles were produced as completed products, while only 20% of completed cars were produced in the fiscal 2021-22 and a majority of cars had a deficit of parts,” he said.
“The highest monthly output since the beginning of the international sanctions in the fiscal 2018-19 belonged to the 11th month of the previous fiscal [Jan. 21-Feb. 19] with 133,000 vehicles.”
The official stated that 1.1 million vehicles were delivered by the two manufacturers in the previous fiscal year, registering a 31% growth compared with last year when delivery stood at 838,000 vehicles.
Tavakkoli announced that 195,000 cars were produced by the private sector, registering a 103% growth compared with the previous fiscal year.
“The share of the private sector in car production amounted to 15% in the fiscal 2022-23, which indicates a threefold increase,” he said.
Passenger car output hit 1.07 million during the period under review, registering a 13% rise compared with the previous year.
The output of pickup trucks reached 125,000 vehicles, registering a 56% year-on-year growth compared with last year.
Van production amounted to 3,000 vehicles during the period, up 267% year-on-year.
Minibus and bus production stood at 2,500 vehicles, showing a rise of 44% compared with the previous fiscal.
The production of heavy vehicles hit 34,000 vehicles during the period to register a 150% YOY growth.
Also, the production of motorcycles grew by 61% YOY to stand at 450,000 vehicles in the year under review.
Vehicle Production Exceeds 1 Million After Four Years
Vehicle production exceeded 1 million units for the first time in four years, as 1.2 million vehicles were produced from the beginning of the current fiscal year (March 21, 2022), the head of the Ministry of Industries, Mining and Trade’s Automotive Industry Office announced on Feb. 25.
“After the reinstatement of international sanctions in the fiscal 2017-18, there was a significant fall in vehicle production and the production of incomplete cars started. Until last year, our vehicle production never exceeded 800,000. In the current fiscal year, it reached 1.2 million vehicles, which indicate a noticeable increase,” Tavakkoli said.
Announcing that the production and supply of cars have been restored, the official said, “Currently, there are no restrictions or problems in the domestic car industry, as in the last weeks of the current Iranian year [ending March 20, 2023], we witnessed a high supply of cars.”
Tavakkoli explained that car manufacturers announce the delivery time to customers based on their production flow and if a customer wishes, the car’s registration process can be finalized based on the announced delivery time.
“The domestic car market will become competitive in the next Iranian year. With the mass supply of domestic cars to the market, which has coincided with the promised car imports, Iran’s car market is expected to become more competitive in the next fiscal year. In this competitive market, car manufacturers and importers may use various sales methods, such as leasing, to sell their vehicles,” he said.
Tavakkoli noted that the Industries Ministry has set the production target for next year at 1.8 million units, which “challenging target” can be fully achieved by relying on knowledge-based companies and domestic supply chain.
Iran’s car manufacturers produced 1.12 million vehicles in the first 11 months of the current fiscal year (March 21, 2022-Feb. 19), registering a 25% growth compared with last year’s corresponding period.
The monthly car production record was broken in the 11th month of the current fiscal year (Jan. 21-Feb. 19) with the production of 131,000 cars for the first time in five years.
