Iran. Motorcycles Industry is moderately recovering fueled by Chinese partners

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Iran motorcycles industry is moderately recovering after the huge drop suffered in the last decade, although only Chinese companies are supplying vehicles and parts to the local industry, as the country is still subject to international trade ban. Potentially the market could be one of top 10 in the World.

Motorcycles Market Trend

In the 2006, only 15th years ago, the Iranian motorcycles market was one of the Top 4 in the World with over 1.5 million sales per year. The two-.wheelers were -by far – the favorite individual mobility device and the industry was flourishing with joint ventures between foreign and local companies to produce locally.

Today, most motorcycle products in Iran are made in China and the market is struggling to recover after a long decline which bring sales down at 100.000 units in the 2018.

While market was moderately recovering, new sanctions introduced against the nuclear Iran policy forced the Indian manufacturers (the top importers in those days) to stop the import in Iran leaving the market in the hands of Chinese manufacturers, considering that almost all the other countries are not importing in Iran vehicles and parts, causing shutdown of local manufacturers.

However, the market is moderately growing, from the very low level achieved in the 2018 and in 2020 grew up 15% versus the previous year, although covid19 effects.

The market potentially values near 1 million sales and in case of the Government would be able to define and respect new agreements on the nuclear project development, Iran would represent again a huge opportunity for the motorcycles industry.

Pollution and emission standards

Tehran is among the most polluted cities in the World and the use of motorcycles with very old technology is considered a key factor. Due to their affordable price and the easy use, plus a do-by-yourself assistance for repairing, over 11 million two-wheeler are circulating in Iran (more than the half in the capital) used for transportation of passengers and cargo.

It is estimated that near 5 million of them should be scrapped because of very high co2 emission, while until the 2016 over 245 local makers were producing any sort of unregulated moped, for low price, but high damage for the healthy.

When the government imposed in 2016 the first emission limits for two wheelers, the new rules caused the closing of 85% of local producers, leaving the space to the domination of importers (via CKD system), mainly from India and China.

Iran Motorcycles
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