Car Imports to Iran Halved in the First Half of 2015

A total of 20,886 vehicles worth $496 million and 942 thousand were imported to Iran in the first half of this year, showing a 57% decrease in number compared to the imported vehicles in the same period last year. According to Iran's Customs, the value of imported vehicles in the first half of this year also decreased by 48% compared to the value of imported vehicles in the same period last year. The declining trend of car imports continued in September 2015, with 3,030 vehicles worth $74 million and 825 thousand imported to Iran. The number of vehicles imported in September this year showed a 70% decrease compared to the same month last year. The value of car imports in this month also decreased by 62% compared to September 2014. Previously, a letter from four cabinet ministers to Hassan Rouhani stated that more than 100,000 vehicles produced by Iranian automakers remain unsold and are 'stockpiled at factory floors.' The letter also mentioned a cumulative debt of 4.2 trillion tomans for Iranian automakers. Other statistics released in recent days and weeks indicated a decline in production by Iranian automakers in the first half of this year, with production of various vehicles dropping approximately 4% to 501,104 units compared to the first half of 2014. According to the Ministry of Industry, Mine, and Trade, vehicle production in Iran fell by more than 47% in September this year, decreasing from 115,462 units in September 2014 to 60,533 units. The decline in car import statistics in the first half of this year, alongside the drop in production of domestic vehicles, indicates that the car market in Iran, like many other economic sectors, is facing recession. The prevailing conditions of stagflation in the Iranian economy, the decline in people's purchasing power, and the suspension of non-essential purchases in the car market due to future uncertainties after the implementation of the JCPOA are cited as the main reasons for this recession.