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Iran's Car Production Halved, Hit By U.S. Sanctions

Iran Khodro car factory, 2018. File photo
Iran Khodro car factory, 2018. File photo

The association of Iranian car makers has reported that car production was halved in the first Iranian month of the year (March 21-April20) compared with the same month last year.

Based on this report published on the official site of the association, in that month 42, 623 vehicles were produced, which is 47 percent lower than last year.

Production of private cars has decreased more than 47 percent, reaching 40, 602 units, while production of vans has stopped and pickup truck production was only 1,916 units.

Productions of buses and minibuses was just 12 units, which is one-tenth of last year and small and large truck production reached 93 units, which is an 86 percent decline compared with the same month last year.

Tough economic sanctions imposed by the United States have hit Iran’s car and truck production hard, with foreign car companies partnering with local manufacturers leaving the country altogether. Two years ago, before the U.S. imposed sanctions Iran produced 1,538,000 vehicles, which declined to 956,000 units last Iranian year as the sanctions kicked in.

Thousands of workers in the car industry have been laid off, collecting a small amount of unemployment pay.