Page 21 - Iran OUTLOOK 2025

Iran Khodro, the Middle East's largest automotive manufacturer, set ambitious production targets of 600,000 units for 2024, building upon its 2023 output of 556,442 vehicles across passenger and commercial segments. This expansion strategy reflected broader industry growth aspirations.
The year saw significant developments in international partnerships, particularly with Russia and China. At the MIMS Automobility Moscow 2024 event, Iranian and Russian manufacturers explored collaborative opportunities in spare parts and vehicle production. Concurrently, high-level discussions with Chinese automakers Chery and Dongfeng indicated Iran's interest in accessing advanced automotive technologies and expanding production capabilities.
However, the industry's development trajectory faced scrutiny from analysts who questioned its maturation over four decades of operation. Critics likened the sector to a "40-year-old child", suggesting it had not achieved the expected level of technological sophistication and independence despite its longevity. These concerns extended to the growing Chinese influence in Iran's automotive sector, sparking debates about the implications for domestic manufacturing capabilities and market independence.
In response to these challenges, domestic manufacturers pursued innovation initiatives. Iran Khodro's introduction of "Rira", the country's first national crossover vehicle, represented an attempt to demonstrate domestic technological capability and reduce reliance on foreign designs. This development, whilst significant for national pride, highlighted the ongoing tension between domestic innovation and international dependency in Iran's automotive sector.
• 6.9 Metals and mining
In 2024, Iran's mining sector demonstrated significant production capacity and strategic expansion across key mineral segments. Iron ore production reached 75mn tonnes, securing Iran's position as the world's seventh-largest producer. This output level reflected the country's substantial mineral reserves and continued investment in extraction capabilities.
The steel industry recorded notable advancement, with production capacity expanding to 31.1mn tonnes, placing Iran tenth globally in steel manufacturing capability. The government maintained ambitious expansion plans, targeting 55mn tonnes of production capacity by
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