[46940] Crisis in Iran's automotive industry: Plunge in production and government call to curb price hikes
[46940] Crisis in Iran's automotive industry: Plunge in production and government call to curb price hikes
Iran's automotive industry has suffered a dramatic 68% drop in production over the last month against the backdrop of the war's consequences, while the Minister of Industry warns against unjustified price increases in the market.
Deep crisis in the Iranian automotive industry
The automotive industry in Iran is facing significant turmoil. According to reports in تهران آنلاین ࡆ TehranOnline, production data for the month of Farvardin (March-April 2026) indicates a sharp decline of about 68% compared to the same period last year, with only 15,117 vehicles produced. The media notes that this decline stems from the "consequences of the war," damage to steel and petrochemical infrastructure, and delays in resuming production lines following the ceasefire.
Market and price impacts
Alongside the decline in supply, an increase has been recorded in the phenomenon of "missing vehicles" (vehicles that were produced but not completed), with over 900 unfinished vehicles accumulating at the "Iran Khodro" company. Various sources, including the پیام ایران network, which cites the economic newspaper "Donya-e-Eqtesad" (known for its criticism of government policy), emphasize that a return to routine depends on changing the government's pricing policy.
Government response
Conversely, the Iranian Minister of Industry, Mine and Trade, Seyyed Mohammad Atabak, issued a public call to manufacturers and market operators to refrain from "sharp and baseless" price increases. In reports by خبرگزاری ایرنا, which is identified with the official government position, and in خبرفوری, the minister emphasized that the relevant bodies must "consider the public" and avoid exploiting rumors about shortages of raw materials—such as steel—as an excuse to raise prices.
Despite the minister's statements, the market remains in a state of uncertainty. As reported in آخرین خبر and آخرین خبر مشهد, the government continues to adhere to a policy of vehicle imports as a tool to calm the market, but as of now, the gap between domestic production supply and market demands remains.