The cheapest Iranian car costs 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 the situation 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 have bought a semi-luxury imported car.
Not only is the new car market in Iran chaotic, but this chaos extends to the second-hand car market as well. Due to the decrease in purchasing power, consumer 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 cheap cars, and importing used cars have remained just a dream. Even car manufacturers have not been able to bring the new products they introduced to the market. Cars like Saipa Aria, Cadillac Shahin Plus, IKCO Rira, and the Iranian version of Renault Kwid have remained only as ideas, and there is still no news of them in the market.
The production status of previous cars is also not favorable. Since the re-imposition of sanctions, car manufacturers have not been able to align their production levels with market demand. As a result, a portion of the demand remains unmet, and consumers are forced to turn to the open market to find their desired option. The current market conditions are such that buying the cheapest new Iranian car, namely the Quick S, requires more than 400 million Tomans in cash. It is evident that with a basic salary of 8 or even 10 million Tomans, gathering 400 million Tomans in cash is not an easy task for the Iranian consumer.
