Iran's Competition Council says car production partnership contracts are legal but lack the price protection of pre-sales

Sepehr Dadjouy Tavakoli, spokesman for Iran's Competition Council, said on Friday, 31 July 2026, that "production partnership" car contracts are legally permitted but differ fundamentally from pre-sale contracts and may weaken consumer rights against price increases.

He stressed that no change has been made to the laws governing the sale of domestically produced cars and that the Competition Council has issued no new ruling on the matter; the council has only publicised the change in carmakers' contracting practice and its consequences for consumers. According to him, carmakers previously relied mainly on pre-sale contracts, but in recent months have shifted part of their sales into production partnership contracts, which make the buyer a partner in the profit and loss of the production process.

The spokesman added that under pre-sale contracts, the council's ruling number 473 largely protected consumers against price increases, but that this protection does not exist in the same form under production partnership contracts. He said a rise in public complaints about these contracts was what prompted the council to address the issue.