Iran’s auto production dropped by 25pc to 821,060 units in 2019 from a year ago, according to data released by International Organization of Motor Vehicle Manufacturers (Oica). Other countries which recorded a steep decline included Argentina and Serbia where output fell by 32.5pc and 37.5pc, respectively. Iran produced 770,000 car units in 2019.
Personal vehicle production fell by 14pc and the output of heavy vehicles like trucks and buses dropped by 50pc in March 2018-Feb 2019 period.
The drop in the production was driven by the sanctions imposed by the US on Iran in May 2018 and later in Sep 2019. US officials also declared that restrictions could be imposed on countries which partner with Iran for trade of goods, including oil. European companies withdrew their production units from Iran. Iran’s GDP fell by almost 10pc due to a decline in its crude oil exports by 90pc.
Iran continues to manufacture vehicles with the help from China, but the output has almost halved in the last two years.