Medium Cars - Iran

Iran

Highlights

Revenue in the Medium Cars market is projected to reach US$3bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.00%, resulting in a projected market volume of US$3bn by 2029.
Medium Cars market unit sales are expected to reach 103.1k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$30k.
From an international perspective it is shown that the most revenue will be generated China (US$89bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Medium Cars market in Iran is experiencing significant growth and development. Customer preferences in Iran are shifting towards medium-sized cars due to their affordability, fuel efficiency, and practicality. Additionally, local special circumstances and underlying macroeconomic factors have contributed to the growth of this market.

Customer preferences: In Iran, customers are increasingly opting for medium-sized cars due to their affordability compared to larger luxury vehicles. Medium cars offer a balance between price and features, making them an attractive choice for budget-conscious consumers. Furthermore, the rising fuel prices in the country have made fuel efficiency a key consideration for car buyers. Medium-sized cars are known for their better fuel economy compared to larger vehicles, making them a popular choice among Iranian consumers.

Trends in the market: One of the key trends in the medium car market in Iran is the increasing demand for compact SUVs. These vehicles offer the practicality and versatility of an SUV in a smaller package, making them suitable for urban environments and long-distance travel. The compact SUV segment has seen significant growth in recent years, with automakers introducing new models specifically tailored to the Iranian market. Another trend in the medium car market is the integration of advanced technology and safety features. Iranian consumers are becoming more aware of the importance of safety while driving, leading to a higher demand for cars with advanced safety features such as lane departure warning, blind-spot monitoring, and automatic emergency braking. Automakers are responding to this demand by equipping their medium-sized cars with these features, making them more appealing to customers.

Local special circumstances: Iran has a young population with a growing middle class, which has contributed to the increasing demand for medium-sized cars. As more young Iranians enter the workforce and achieve financial stability, they are looking to purchase their own vehicles. Medium cars provide an affordable and practical option for these individuals, allowing them to fulfill their transportation needs without breaking the bank.

Underlying macroeconomic factors: The economic situation in Iran has improved in recent years, leading to increased consumer spending power. As the economy stabilizes, more Iranians are able to afford medium-sized cars, driving the growth of this market. Additionally, government incentives and subsidies for locally produced vehicles have further encouraged the purchase of medium cars, boosting the market. In conclusion, the Medium Cars market in Iran is developing due to customer preferences for affordable and fuel-efficient vehicles. The increasing demand for compact SUVs and the integration of advanced technology and safety features are key trends in this market. Local special circumstances, such as a young population and a growing middle class, along with underlying macroeconomic factors, including improved economic conditions and government incentives, have also contributed to the growth of this market.

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).