TEHRAN, Iran: Across Iran’s capital, rush-hour traffic always grinds to a halt, a sea of boxy Renault four-doors and Peugeot coupes all idling their way through the streets of Tehran.
Soon, however, Iran’s faltering nuclear deal with world powers may be what causes the country’s domestic automotive market to stall out.
As Iran’s currency, the rial, suffers precipitous falls against the US dollar — down some 140 percent since President Donald Trump withdrew America from the accord — cars are growing more and more expensive even as tens of thousands clamor to order domestic models online. Meanwhile, Western manufacturers are pulling out of the country and foreign-produced parts are becoming harder to find as Chinese cars fill the void.
“It is clear and obvious that the US is purposefully putting pressure on the people of Iran to instigate discontent” over the auto market, said Mohammad Reza Najfimaneh, the head of the Iranian Specialized Manufacturers of Auto Parts Association.
Iran, one of the Mideast’s biggest countries and home to 80 million people, has a huge demand for automobiles. In 2017 alone, Iran produced more than 1.5 million cars, up some 14 percent from the year before, according to a report by Iran’s Ministry of Industries, Mines and Trade earlier this year.
Some 90 percent of market share is controlled by two local companies: Iran Khodro, which assembles Peugeot-branded vehicles from kits, and SAIPA, which has made Citroens and Kias. Both manufacturers also build Renaults.
Iran’s auto industry suffered under US and Western sanctions, which targeted Iran over fears about its nuclear program. The West worries Iran could use its technology to build atomic bombs. Iran long has said its program is for peaceful purposes.
The 2015 nuclear deal, which saw Iran limit its enrichment of uranium in exchange for the lifting of some sanctions, provided a needed boost to the industry.
French car-maker PSA Peugeot Citroen reached a deal in 2016 to open a plant producing 200,000 vehicles annually in Iran. Fellow French automobile manufacturer Groupe Renault signed a $778-million deal to build 150,000 cars a year at a factory outside of Tehran. Meanwhile, Volkswagen announced plans to import vehicles into Iran.
Now, however, those firms have pulled back on those plans.
Concern over Iran’s domestic auto industry has been high. That was shown in a visit to Iran-Khodro last week by Ali Shamkhani, the secretary of Iran’s Supreme National Security Council.
“The enemy in the economic war is after damaging public contentment and the auto industry is one of the front lines in the war,” Shamkhani said during his visit.
More than 100,000 people are employed by Iran-Khodro and SAIPA, while another 700,000 Iranians work in industries related to car manufacturing.
There are fears by some business analysts in Iran that any downturn in the auto industry would further worsen unemployment in the country.
Iran’s official unemployment rate is 12.3 percent, meaning some 3 million people are out of work, but experts believe it is much higher, especially among university graduates. Those unemployed often try to scrape enough money together to work as taxi drivers in the city, meaning they could be doubly hit.
Meanwhile, the drop in the Iranian rial has made buying a car difficult. The rial traded at 62,000 to the dollar before Trump’s pullout from the nuclear deal in May. It has gone as high as 150,000 to $1 since.
“I saved some money to buy an Iranian car, but prices jumped and factories do not provide cars on time,” said Mahin Tabrizi, a 45-year-old teacher. “I don’t know what I can do.”
Those prices also have hurt auto parts sales.
“Prices of car parts are crazy, all because of the sanctions,” said Mahmoud Rahimi, a taxi driver. “I bought brake pads for my car for double the price in less than a year.”
Even those who pay for an Iranian car can face delays in having them delivered. Iranian car production reportedly dropped 29 percent in June compared to the same month last year. Analysts blamed that on lack of parts due to currency fluctuation.
Meanwhile, importing a foreign car grows more expensive as the rial drops in value. Iran places import taxes of more than 100 percent on foreign cars. A ban on importing foreign cars also has been in force since April, halting new orders.
“Nearly two years ago, I paid for an imported car, yet they have not delivered it due to upheavals in the rial rate and sanctions,” said Reza Piltan, a retired engineer waiting for an SUV by South Korean manufacturer SSangYong.
In the absence of Western car makers, however, China is already starting to show up in the country. A new dealership for Chinese automaker Chery recently opened in Tehran. Iranian lawmaker Vali Maleki, a member of the parliamentary committee on industry, last month suggested that Chinese companies can take over the share of other foreign companies that have left the Iranian market.
“The Chinese cars are selling very well in Iran,” car dealer Ali Razavi said. “Their dealerships offer a wide range of methods of leasing and financing that enable many customers to buy a new car for just about $2,000 to $4,000.” Those cars are partly assembled in Iran.
Demand is still strong for Iranian-made cars as well, however.
Last week, in less than an hour, 50,000 customers rushed the website of SAIPA to pay nearly $2,000 each to buy cars that the company plans to make in the future. The move is largely an effort by buyers to save on their purchases as the rial continues to fall. Another factory, Iran-Khodro, has a similar plan for selling future cars next week.
Still, anger over quality lurks.
“In other countries people pay small advance fees to buy a standard car based on installments,” said Fatemeh Azari, whose son last week managed to buy a car on SAIPA’s website. “Here, we pay all the money in advance to receive a clunker months later.”
Iran’s domestic car market stalls as nuclear deal falters
Iran’s domestic car market stalls as nuclear deal falters
- Iran’s auto industry suffered under US and Western sanctions, which targeted Iran over fears about its nuclear program
- There are fears by some business analysts in Iran that any downturn in the auto industry would further worsen unemployment in the country
30 killed in drone attack on hospital in Sudan’s Darfur: medical source
The bombing of the Saudi Hospital on Friday evening “led to the destruction” of the hospital’s emergency building, the source told AFP, requesting anonymity for fear of retaliation.
It was not immediately clear which of Sudan’s warring sides had launched the attack.
Since April 2023, the Sudanese army has been at war with the paramilitary Rapid Support Forces (RSF), who have seized nearly the entire vast western region of Darfur.
They have besieged El-Fasher, the state capital of North Darfur, since May, but have not managed to claim the city, where army-aligned militias have repeatedly pushed them back.
Last week, they issued an ultimatum demanding army forces and allies leave the city by Wednesday afternoon in advance of an expected offensive.
Local activists have reported intermittent fighting since, including repeated artillery fire from the RSF on the famine-hit Abu Shouk displacement camp.
On Friday morning alone, heavy shelling killed eight people in the camp, according to civil society group the Darfur General Coordination of Camps for the Displaced and Refugees.
The United Nations has voiced alarm, calling on both parties to ensure the protection of the city’s civilian population — some two million people.
“The people of El-Fasher have suffered so much already from many months of senseless violence and brutal violations and abuses, particularly in the course of the prolonged siege of their city,” United Nations rights office spokesman Seif Magango said Wednesday.
France in communication to maintain Hezbollah-Israel ceasefire, Lebanese statement citing Macron says
- Aoun asked Macron to oblige Israel to implement the agreement to preserve stability
CAIRO: French President Emmanuel Macron told his new Lebanese counterpart Joseph Aoun in a phone call that he is in communication to maintain the ceasefire between Hezbollah and Israel, according to a statement by the Lebanese President’s office on X.
Aoun asked Macron to oblige Israel to implement the agreement to preserve stability.
The phone call comes after the Israeli army on Saturday warned residents of dozens of Lebanese villages near the border against returning until further notice, a day after Israel said its forces would remain in south Lebanon beyond a Sunday deadline for their departure under the US-brokered ceasefire that ended last year’s war.
70 freed and ‘deported’ Palestinian prisoners reach Egypt
- According to Israeli list, more than 230 Palestinian prisoners to be released under the deal are serving life sentences
- They will be permanently expelled from the Palestinian territories upon their release
CAIRO: Seventy Palestinian prisoners arrived aboard buses in Egypt Saturday after being released from Israel as part of a Gaza ceasefire deal, state-linked Egyptian media reported.
Al-Qahera News, which is linked to state intelligence, said the prisoners were those “deported” by Israel, adding they would be transferred to Egyptian hospitals for treatment.
According to a list previously made public by Israeli authorities, more than 230 Palestinian prisoners to be released under the deal are serving life sentences for deadly attacks on Israelis, and will be permanently expelled from the Palestinian territories upon their release.
Broadcasted footage on Saturday showed some of the prisoners, wearing grey tracksuits, disembarking from two buses on the Egyptian side of the Rafah border crossing with Gaza.
After transiting in Egypt, the deported prisoners “will choose either Algeria, Turkiye or Tunisia” to reside, Amin Shuman, head of the Palestinian prisoners’ affairs committee, told AFP.
“It’s an indescribable feeling,” one of those released told Al-Qahera News, smiling and waving from the window of the bus.
The prisoners transferred from the Ktziot prison in Israel’s Negev desert into Egypt are part of a group of 200 prisoners released Saturday in exchange for four Israeli hostages freed by Hamas militants in Gaza.
Police kill a man who set himself on fire outside a Tunisian synagogue
- The man advanced toward a law enforcement officer while ablaze, and a second officer opened fire to protect his colleague
- The officer was hospitalized with burns, as was a passerby
TUNIS: A man set himself on fire in front of the Grand Synagogue in the Tunisian capital and was killed by police, the Interior Ministry said. A police officer and a passerby suffered burns.
The man started the fire after sundown Friday, around the time the synagogue holds Sabbath prayers.
The Interior Ministry said in a statement that the man advanced toward a law enforcement officer while ablaze, and a second officer opened fire to protect his colleague. The officer was hospitalized with burns, as was a passerby, the statement said.
The ministry did not release the man’s identity or potential motive for his act, saying only that he had unspecified psychiatric disorders.
Tunisia was historically home to a large Jewish population, now estimated to number about 1,500 people. Jewish sites in Tunisia have been targeted in the past.
A national guardsman killed five people at the 2,600-year-old El-Ghriba synagogue on the island of Djerba after an annual pilgrimage in 2023. Later that year, pro-Palestinian protesters vandalized a historic synagogue and sanctuary in the southern town of El Hamma. And a garden was set ablaze last year outside the synagogue in the coastal city of Sfax.
Tunisia’s recent history was also marked by the self-immolation of a street vendor in 2010 in a protest linked to economic desperation, corruption and repression. Mohamed Bouazizi’s act unleashed mass protests that led to the ouster of Tunisia’s autocratic ruler and uprisings across the region known as the Arab Spring.
‘We cannot forget Sudan’ amid ‘hierarchy of conflicts’: UK FM
- David Lammy: ‘If this was happening on any other continent there would be far more outrage’
- About half of Sudan’s population face acute food insecurity, according to UN
LONDON: The humanitarian catastrophe in Sudan must not be forgotten amid a “hierarchy of conflicts” in the world, the UK’s foreign secretary has warned.
Writing in The Independent, David Lammy called for renewed international attention on the 21-month-long civil war. The humanitarian disaster from the war will be “one of the biggest of our lifetime,” he said.
Since the conflict began in April 2023, almost 4 million people have fled Sudan and fighting has killed more than 15,000, according to conservative estimates.
Lammy visited a refugee camp for displaced Sudanese in neighboring Chad this week. “I bore witness to what will go down in history as one of the biggest humanitarian catastrophes of our lifetimes,” he said.
“The truth no one wants to admit is that if this was happening on any other continent — in Europe, in the Middle East, or in Asia — there would be far more attention from the media — far more outrage. There should be no hierarchy of conflicts, but sadly much of the world acts as if there is one.”
About half of Sudan’s population — more than 24 million people — face acute food insecurity, the latest UN figures show.
The Sudanese Armed Forces and the Rapid Support Forces remain locked in a battle for control of the country and its resources.
Lammy praised the work of the country’s neighbors — including Egypt, Chad and South Sudan — in helping to manage the crisis.
The UN high commissioner for human rights, Volker Turk, warned last week that the war is taking an “even more dangerous turn for civilians.”
On Thursday, the UN Human Rights Office reported that about 120 civilians were killed and more than 150 injured in drone attacks across the city of Omdurman.
Lammy said: “The world cannot continue to shrug its shoulders. There can be no hierarchy of suffering. We cannot forget Sudan.”
The UK has pledged $282 million in aid to almost 800,000 displaced people in Sudan. The funding will supply emergency food assistance and drinking water, among other relief.
