The 6th Tehran International Auto Show, which opened its doors on January 27 for a five-day run, has become a dominant showcase for Chinese automotive brands. The event, featuring presentations from 40 companies across the auto sector, puts a spotlight on a wide array of China-made vehicles, such as the Chery-based Phoenix, BYD’s Yuan Plus, Han, Song Plus, and Dolphin, as well as the MVM X77.

While Japanese, Korean, and German models are also on display, the exhibition floor is largely occupied by Chinese manufacturers. The strong presence is further amplified by several global automakers that now use China as an assembly base for vehicles sold in Iran.

Industry analysts point to a combination of international sanctions and the compelling cost-effectiveness of Chinese vehicles as the primary drivers behind this surge, which includes both direct imports and local assembly operations.

Visitors to the exhibition can explore a diverse range of products, from imported and locally assembled passenger cars to electric and hybrid vehicles, heavy-duty trucks, and motorcycles. The event has served as a launchpad for over 30 newly imported models, generating significant visitor interest. Notable debuts include the Lamari Ecco, the MVM X77, the MG RX9 seven-seater crossover, the Hongqi H5 hybrid, the Fidelity Elite, and the F35 Force 5.5-ton truck alongside its F38 CNG-powered variant.

According to automotive expert Mojtaba Nazari, the prevalence of Chinese cars is a direct consequence of international sanctions, which have restricted Iran’s access to automotive markets in Europe and North America. He noted that the Iranian auto industry was an early target of such restrictions, compelling the nation to turn to manufacturers in China, Russia, and India.

Nazari elaborated that China’s automotive sector benefits from design and engineering influences from Italy and Germany, enhancing the competitiveness of its vehicles. He added that numerous leading international brands maintain production lines in China, where assembly is conducted under rigorous quality control. Citing Mazda as an example, he stated that models assembled in China conform to the brand’s universal standards and are destined for both domestic sales and export markets like Iraq. He credits China’s automotive expansion to substantial government backing for exports and highly efficient, cost-effective manufacturing processes.

Echoing this sentiment, another market expert, Majid Jalili, observed that Chinese cars are winning over Iranian consumers due to their contemporary styling and accessible pricing. He acknowledged varying quality levels, clarifying that some models meet high standards—a factor often determined by the specific agreements between Iranian assemblers and their Chinese partners.

Jalili stressed the critical importance of reliable after-sales service and spare parts availability for these vehicles. He explained that local assemblers typically import vehicles in Completely Knocked-Down (CKD) kits and can qualify for tariff discounts if they achieve a localization rate exceeding 20%, an incentive most Iranian players utilize.

Regarding pricing, Jalili noted that assembled vehicle costs are calculated based on production expenses rather than being directly tied to foreign exchange fluctuations. Consequently, the main challenge for local assemblers is securing timely access to foreign currency for importing necessary components.