Iranian Carmakers’ Woes Deepen

Major Iranian car companies are grappling with two main problems: lack of auto parts that have caused a sharp decline in production and a failure to clear the piling backlog of car orders they have presold months ago.
Over the past few months, in a move to calm Iran’s chaotic car market, local automakers Iran Khodro (IKCO) and SAIPA presold over 1 million vehicles.
Following the imposition of harsh US sanctions against Tehran last summer and amid economic tensions fueled by an inflation rate unseen in recent memory, Iranians have been converting their savings into hard currencies and safe haven assets, including gold coins and cars.