Prices of Iranian-made and assembled cars have surged as the rial weakened against the dollar, with major manufacturers raising official rates to offset mounting costs, Iranian media reported on Monday.
Fluctuations in the exchange rate remain one of the most decisive factors shaping the car market, according to Tabnak website.
“When the dollar is stable, the car market stays calm, but even a slight rise in the exchange rate causes an immediate increase in vehicle prices,” the outlet wrote.
Khabar Online website described the latest changes as “an unusual wave of price adjustments,” saying that prices of several popular models climbed sharply after the dollar strengthened.
Automakers announce new price hikes
Iran Khodro, the country's largest car makers, on Sunday announced updated prices for 42 models, showing an average increase of 6.3 percent -- equivalent to about 389 million rials, or $350 per car. Kerman Motor also raised prices for five of its vehicles by over 14 percent.
Iran Khodro’s Dena Plus Turbo automatic (model 2025) rose by 100 million rials to about 13.3 billion rials -- roughly $12,090. The 2024 version was priced around 11.4 billion rials ($10,360). The Peugeot 207 automatic reached about 13.3 billion rials ($12,090), while its manual model traded near 9.9 billion rials ($9,000). The Tara automatic was listed at 12.7 billion rials ($11,540).
Market pressure mounts amid currency slide
Economists say the dual effect of a weakening rial and official price revisions is fueling rapid inflation in the auto sector.
“Manufacturers and assemblers have formally raised their prices, and that immediately drives another wave of market increases,” said Reza Gheibi, an analyst at Iran International.
The depreciation of the rial -- now trading around 1.1 million per dollar -- has intensified broader economic strains, which analysts link to renewed pressure following the reactivation of UN sanctions under the snapback mechanism.
