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
Paramilitary attack on Sudan famine-hit camp kills 25: activists
- Shelling and intense gunfire targeted the Zamzam displacement camp near El-Fasher on Friday
PORT SUDAN: Sudan’s paramilitary Rapid Support Forces on Friday killed 25 civilians including women and children, in an attack on a famine-stricken camp in Sudan’s North Darfur state, activists said.
The attack, which involved shelling and intense gunfire, “targeted Zamzam displacement camp from both the southern and eastern directions,” said the local resistance committee, a volunteer aid group in North Darfur’s besieged capital of El-Fasher.
Zamzam and other densely populated camps for the displaced around El-Fasher have suffered heavily during nearly two years of fighting between Sudan’s army and the RSF.
The paramilitaries have stepped up its efforts to complete their conquest of Darfur, Sudan’s vast western region, since losing control of the capital Khartoum last month.
Eyewitnesses described seeing RSF combat vehicles infiltrating the camp under cover of heavy gunfire.
The local resistance committee said the attack was met with counter-fire but the full extent of damage was unclear due to disrupted communications and Internet shutdowns.
Zamzam was the first part of Sudan where a UN-backed assessment declared famine last year.
The conflict in Sudan has killed tens of thousands of people and uprooted more than 12 million since a struggle for power between rival generals erupted into full-blown war on April 15, 2023.
More Sudanese refugees fleeing as far as Europe, UN refugee agency says
- Olga Sarrado, UN refugee agency spokesperson, told a press briefing in Geneva that some 484 Sudanese had arrived in Europe in January and February, up 38 percent from the same period last year
GENEVA: Over a thousand Sudanese refugees have reached or attempted to reach Europe in early 2025, the United Nations’ refugee agency said on Friday, citing growing desperation in part due to reduced aid in the region.
Some 12 million people have been displaced by the two-year conflict between the Sudanese army and the paramilitary Rapid Support Forces that has fueled what UN officials call the world’s most devastating aid crisis.
While some have recently returned home to Khartoum, millions of others in neighboring countries like Egypt and Chad face tough choices as services for refugees are being cut, including by the United States as part of an aid review.
Olga Sarrado, UN refugee agency spokesperson, told a press briefing in Geneva that some 484 Sudanese had arrived in Europe in January and February, up 38 percent from the same period last year.
Around 937 others were rescued or intercepted at sea and returned to Libya — more than double last year’s figures for the same period, she added.
“As humanitarian aid crumbles and if the war does not abate, many more will have little choice than to join them,” she said.
Migrant deaths hit a record last year, the UN migration agency said, with many perishing on the Mediterranean crossing which is one of the world’s most dangerous.
UN: 36 Israeli strikes in Gaza killed ‘only women and children’
- UN rights office spokesperson warns the military strikes across Gaza were ‘leaving nowhere safe’
- Israel has said its troops are seizing ‘large areas’ in Gaza and incorporating them into buffer zones cleared of their inhabitants
GENEVA: The United Nations on Friday said it analysis of 36 Israeli strikes in Gaza showed only women and children were killed and decried the human cost of the war.
The UN rights office also warned that expanding Israeli evacuation orders were resulting in the “forcible transfer” of people into ever-shrinking spaces in the war-ravaged Palestinian territory.
Spokeswoman Ravina Shamdasani warned the military strikes across Gaza were “leaving nowhere safe.”
“Between 18 March and 9 April 2025, there were some 224 incidents of Israeli strikes on residential buildings and tents for internally displaced people,” she told reporters in Geneva.
“In some 36 strikes about which the UN Human Rights Office corroborated information, the fatalities recorded so far were only women and children,” she said.
“Overall, a large percentage of fatalities are children and women, according to information recorded by our Office,” she added.
Shamdasani cited an April 6 strike on a residential building of the Abu Issa family in Deir al Balah, which reportedly killed one girl, four women, and one four-year-old boy.
She highlighted that even the areas where Palestinians were being instructed to go in the expanding number of Israeli “evacuation orders” were also being subjected to attacks.
“Despite Israeli military orders instructing civilians to relocate to the Al Mawasi area of Khan Younis, strikes continued on tents in that area housing displaced people, with at least 23 such incidents recorded by the Office since 18 March,” she said.
Shamdasani referred to a March 31 order by the Israeli military covering all of Rafah, the southernmost governorate in Gaza, followed by a large-scale ground operation.
Israel has said its troops are seizing “large areas” in Gaza and incorporating them into buffer zones cleared of their inhabitants.
“Large areas are being seized and added to Israel’s security zones, leaving Gaza smaller and more isolated,” Israel’s Defense Minister Israel Katz said Wednesday.
“Let us be clear, these so-called evacuation orders are actually displacement orders, leading to displacement of the population of Gaza into ever shrinking spaces,” Shamdasani said.
“The permanently displacing the civilian population within occupied territories amounts to forcible transfer, which is a grave breach of the Fourth Geneva Convention, and it is a crime against humanity.”
WHO: Medicine critically low due to Gaza aid block
- Lack of medicine making it hard to keep hospitals even partially operational
GENEVA: Medicine stocks are critically low due to the aid block in Gaza, making it hard to keep hospitals even partially operational, the World Health Organization said on Friday.
“We are critically low in our three warehouses, on antibiotics, IV fluids and blood bags,” WHO official Rik Peeperkorn told reporters in Geneva via video link from Jerusalem.
Yemen ‘not a battleground for settling scores,’ says top government official
- Brig. Gen. Tariq Mohammed Abdullah Saleh calls for stronger support for Yemeni forces on the ground to restore balance
DUBAI: Yemen is “not a battleground for settling scores, nor part of any external compromises,” a top government official told Asharq Al-Awsat in an exclusive interview.
Brig. Gen. Tariq Mohammed Abdullah Saleh, a member of Yemen’s Presidential Leadership Council with vice-presidential rank, further emphasized that diminishing the country to a pawn between powerful nations engaged in political play undermines its sovereignty and regional security.
“The world would be making a mistake by accepting Yemen as a bargaining chip in Iranian negotiations,” said Saleh, who also heads the Political Bureau of the National Resistance. He also emphasized Yemen’s strategic importance to global shipping routes.
Saleh has remained largely out of public view since the US intensified its air campaign against the Iran-aligned Houthis to stop the threat they pose to civilian shipping and military vessels in the Red Sea and Gulf of Aden.
He further warned that keeping Yemen “a base for the Iranian Revolutionary Guard” threatens not only Yemenis but also regional and international interests.
But achieving stability in the conflict-ridden country hinges on supporting a national state rooted in constitutional rule and genuine popular consensus, not on short-term geopolitical deals, Saleh added.
He called for stronger support for Yemeni forces on the ground to restore balance, not as a tool for escalation, but because it is a national imperative to protect civilians and preserve hard-won gains.
He said the Yemeni government was in ongoing coordination with international partners and the Saudi-led coalition backing legitimacy in Yemen to secure further assistance for the national struggle.
Cooperation with regional and international partners to bolster the country’s coast guard, particularly in the Red Sea, a strategic artery for global trade, also continues, the Yemeni official said.
Maritime security cannot be separated from national sovereignty, and defending sea lanes was integral to restoring state authority on land and at sea, Saleh said.
On achieving peace in Yemen, Saleh said: “There is no meaning to any settlement that does not subject the Houthis to the Yemeni constitution and the rule of law.” He discounted any notion that the militia group could be accommodated outside a constitutional framework.
“Peace cannot be granted to a group that rejects the state,” he said. “It is forged when the state regains the capacity to enforce the law and protect its citizens.”
For Saleh, forging a peace agreement with the Houthis — whom he describes as a bloodthirsty group with no commitment to national frameworks and an ideology rooted in an enemy state — was virtually nonexistent.
He accused the Houthis of placing their leadership and institutions tied to Iran’s Revolutionary Guard Corps above Yemen’s state institutions.
“Governance is about managing people’s affairs based on shared frameworks,” Saleh said. “The Houthis do not abide by any of that.”
Saleh has put direct blame on Iran for perpetuating the conflict through its armed proxies, keeping Yemen hostage to violence and rebellion, although Tehran has continually denied its involvement.
Saleh also acknowledged the challenges facing the Presidential Leadership Council, and described the internal disagreements as “natural,” given the complexity of the crisis in Yemen.
“In the end,” he said, “what unites us is greater than any differences.
“Disagreements are natural in any leadership body, particularly in exceptional conditions like Yemen’s,” he said. “But more important is our ability to navigate this diversity and divergence while remaining committed to the national interest.”
