CRU Group: Iran's vehicle output set for a sharp decline this year

UK based research firm CRU Group said in a report that it has cut its forecast for Iran's 2026 passenger vehicle production by around 390,000 units, close to a 30 percent year on year decline. Guillaume Osouf, principal analyst at CRU Group, said a prolonged regional conflict would likely change the auto market outlook drastically for the rest of the year. The report said Iran's two largest automakers, Iran Khodro and SAIPA, have halted production at times in recent months due to disruption in supply chains for steel, aluminum and petrochemical inputs, a trend also confirmed by Iranian business media including Financial Tribune, which reported sharp production drops at both companies in recent months. The slowdown affects an industry that CRU Group says directly employs more than 110,000 people.