Iran's Competition Council says vehicle production partnership contracts are lawful but lack the price protection of pre sales

Sepehr Dadjouy Tavakoli, spokesperson for Iran's Competition Council, said on Friday 31 July 2026 that vehicle "production partnership" contracts are legally permitted and that no change has been made to the rules governing domestic car sales. He said the Council has issued no new resolution on the matter and has only publicised the shift in the contract format used by carmakers.

The substance of that notice is the legal difference between the two sales formats. Under pre sale contracts, Competition Council resolution number 473 largely shielded buyers from price increases, whereas a production partnership contract carries no equivalent protection and makes the buyer a partner in the profit and loss of the production process. Carmakers have moved part of their sales into this format in recent months.

Dadjouy Tavakoli added that a rise in public complaints prompted the Council to step in, that the aim is not to void the contracts but to inform buyers before they sign, and that carmakers are now required to state the terms of these contracts transparently in the contract text.