Reporting "asre Khodro", It has been deemed a priority industry by the Iranian government over the past ۱۵ years and was growing strongly until it went into a dramatic slump in ۲۰۱۲-۱۳ as international sanctions affected companies, consumers and foreign investors.
Production rose sharply in ۲۰۱۴ as the economy recovered, but then declined again in ۲۰۱۵. A landmark nuclear deal was reached with major international powers, and many sanctions were lifted in January ۲۰۱۶. With GDP growth accelerating, Iran's vehicle output increased by ۱۸.۶%, to ۱.۲m units.
The new car market rebounded strongly in ۲۰۱۶ after a dip in ۲۰۱۵, and The Economist Intelligence Unit expects another jump this year. This will be followed by more moderate growth that will nevertheless push sales to repeated all-time highs. During the ۲۰۱۷-۲۱ forecast period as a whole, we expect car sales to report a compound annual growth rate (CAGR) of ۹%. GDP growth is expected to average ۵.۶% a year during the same period.
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