Passenger Cars - Iran

Iran

Revenue in the Passenger Cars market is projected to reach US$27.6bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.17%, resulting in a projected market volume of US$37.8bn by 2028.
The market's largest segment is SUVs with a projected market volume of US$12.3bn in 2024.
Passenger Cars market unit sales are expected to reach 1,135.00k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$32.77k in 2024.
With a vehicle unit sales share of 48.4% in 2024, Suzuki is expected to have one of the highest market share in the selected region.
The value market share of the make Suzuki in the selected region is expected to stand at 33.6% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Iran has experienced significant growth in recent years, driven by changing customer preferences and favorable macroeconomic factors.

Customer preferences: In Iran, there has been a shift in customer preferences towards more fuel-efficient and environmentally-friendly vehicles. This trend is largely influenced by global concerns about climate change and the need for sustainable transportation solutions. As a result, there has been an increased demand for hybrid and electric vehicles in the Iranian market. Additionally, customers are placing a greater emphasis on safety features and advanced technology in their vehicle choices.

Trends in the market: One of the key trends in the Passenger Cars market in Iran is the increasing popularity of SUVs and crossover vehicles. This trend can be attributed to the growing urbanization and modernization of the country, as well as the desire for vehicles that offer both comfort and versatility. SUVs and crossovers are particularly well-suited to the Iranian market, as they can navigate the country's diverse terrain and provide ample space for passengers and cargo. Another trend in the market is the rise of online car sales and digital platforms. With the increasing internet penetration in Iran, customers are becoming more comfortable with making large purchases online, including cars. Online car sales platforms offer convenience and transparency, allowing customers to compare prices and features from the comfort of their own homes. This trend has also been accelerated by the COVID-19 pandemic, which has led to a greater reliance on online shopping across various industries.

Local special circumstances: Iran has a young and growing population, with a large proportion of the population under the age of 30. This demographic trend has significant implications for the Passenger Cars market, as younger consumers tend to have different preferences and priorities compared to older generations. Younger consumers in Iran are more likely to prioritize affordability, technology, and environmental sustainability when choosing a car. This has led to an increased demand for smaller, more fuel-efficient vehicles that offer advanced features at an affordable price point.

Underlying macroeconomic factors: The Passenger Cars market in Iran has also been influenced by various macroeconomic factors. The lifting of economic sanctions in recent years has led to increased foreign investment and improved access to international markets. This has resulted in a greater availability of imported vehicles and a wider range of options for Iranian consumers. Additionally, the government has implemented various policies and incentives to promote the domestic automotive industry, including tax breaks and subsidies for locally-produced vehicles. These factors have contributed to the growth and development of the Passenger Cars market in Iran.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).