Iranian automotive production has dropped 50% since late 2018
- Automobile production in Iran has been suffering since October 2018 (see graph) from the shock of the severe economic sanctions imposed by Western nations, and first and foremost by the United States of America.
- The average level of 120,000 units produced per month then collapsed to 80,000 units in November and December 2018, then to 60,000 units per month from January to August 2019, i.e. half the volume recorded a year earlier.
- The brands most affected are the French brands that accounted for most of the local production (more than 40% of the total in 2017) and which have now officially ceased production, under pressure from the US government, even if a small quantity of vehicles are still manufactured from internal or external stocks.
- The PSA group is the most affected of all the manufacturers in Iran, as their shortfall will be around 300,000 to 400,000 units in 2019, and this scenario could be repeated in subsequent years, if the Trump administration maintains or strengthens these sanctions that impact all Western companies operating in Iran.
- If production volume remains at the current rate in Iran, the country will only produce about 700,000 vehicles compared to 1,400,000 two years ago. Of these 700,000 vehicles, half will leave the factories of Iran Khodro and Saipa (national brands) compared to 42% two years ago. Chinese brands will produce 20% of the total, compared to 14% two years ago. French brands will only account for a quarter of Iranian production (thanks to stocks) compared to 42% two years ago.
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