Car Prices Fall in Israel While Surging Sharply in Iran Amid Inflation and Sanctions

In Israel, car importers are competing aggressively with creative discounts and promotions due to a growing inventory of unsold vehicles. Meanwhile, in Iran, new car prices are soaring, according to local media reports. Iran's automotive industry is significant, with about 1.2 million new cars sold last year. However, Western sanctions have removed brands like Renault, Chevrolet, and Toyota from official Iranian markets, though they still appear through unofficial channels. The main producers in Iran remain local companies such as Iran Khodro, Saipa, and Modiran Khodro, which manufactures Chery vehicles locally. The ongoing conflict with the United States has triggered strong inflation, causing new locally made car prices to rise by tens of percent since the start of the year. Additionally, Western embargoes and blocked shipping routes have increased raw material costs, further driving prices up. Despite these sharp increases, Iranian cars remain significantly cheaper than those in Israel. For example, a new Saipa Quick family car with a 1.5-liter engine costs about $6,600, the cheapest automatic car, the Iran Khodro Sahand Plus, is priced at $9,135, and the most expensive locally produced model, the Iran Khodro RIRA, sells for $19,000.