Iran ranked as the 16th biggest automaker of the world in the year 2006. It is the number one automaker of the Middle East and one of the leading frontrunners in the Asian continent. Over one million and eighty four thousand automotives were produced in the year 2006-2007 which constituted 1.43% of the total automotives produced in the world. Automotive production in Iran between March 2006 and March 2007 rose to 127 units per 1000 persons in the country.
There over 25 automakers in Iran, actively producing both light and heavy vehicles. These automakers are in joint venture with several popular international automakers such as Peugeot (France), Citroen (France), Volkswagen (Germany), Nissan (Japan), Toyota (Japan), Kia Motors (South Korea), Proton (Malaysia), Chery (China) and many other established producers of light and heavy vehicles. These automakers produce a wide range of automotives including motorbikes, passenger cars, vans, mini trucks, medium sized trucks, heavy duty trucks, minibuses, large size buses and other heavy automotives used in commercial and private activities in the country.
However, despite high production levels, it is unanimously believed by experts that the demand for automotives far outstrips the supply. According to estimates the current demand stands at 1.5 million vehicles, which currently cannot be met by the local producers. More than half of the vehicles in Iran are over 25 years old and vehicle density is relatively low at 55 cars per 1000 people.
In 2006, the government lowered the automotive import tariff levels to 90% (further drop is expected in March 2008) for light weight vehicles and since then a huge influx of imported vehicles has been witnessed in the country. The tariff level for import of heavy vehicles is even lower at 20%, due to low levels of local production and high demand. As a result, a variety of automotive brands are being presently imported into Iran including Toyota, BMW, Mercedes Benz (these three being the expensive and/or luxury brands), Rover, Ssangyong, Audi, Subaru, Rio LS, Hyundai (Sonata and Azar1), Citroen, Daimler-Chrysler, Proton, Countach, Volkswagen, Renault Leon, Altea variety of heavy vehicles, construction and mining equipment from leading manufacturers such as Mercedes Benz, Renault, Iveco, Mann, Kamaz, Caterpillar.
