Just as Iranian authorities are preparing for a post-sanctions economic revival, another problem has emerged. A group of Iranian citizens has launched a campaign on social media under the banner “No to Zero Cars.” In Iran, brand-new zero-mileage vehicles are referred to as “zero cars.” Thus, the campaign urges Iranian consumers to not purchase new, domestically made cars. Word of the boycott has quickly spread and in a short span of time created serious problems for the Iranian auto sector — the country’s second-biggest industry.

To be clear, cars are big business in Iran. Local carmakers and related firms account for 12% of total employment. The Iranian auto sector, which has annual turnover of some $12 billion, also supports 60 other industries, such as glassmaking, aluminum, copper, steel, rubber, textiles and paint. With sanctions set to be lifted, the government has plans for expanding the auto industry in the hopes of creating thousands of badly needed new jobs. At the heart of the government’s plans lies the lofty ambition to step up output to 3 million vehicles per year. But getting there won’t be easy — and the current picture is far from rosy.

Ordinary Iranians have for years been complaining about the low quality and high prices of domestically produced cars. Al-Monitor talked about some of the underlying issues that are contributing to this dire situation with Azita — a Tehran-based journalist with a weekly economic journal — who spoke on the condition that her full name not be divulged. Azita was pointed in her criticism and emphasized that the Iranian auto sector is plagued by monopoly, which has resulted in a damaging lack of competition reflected in both the prices and quality of locally made vehicles. She also referred to high tariffs for imported cars and violations of consumer rights as other key factors contributing to the current situation.

Western sanctions, which drastically hit domestic production of cars, coupled with the economic mismanagement of the administration of former President Mahmoud Ahmadinejad have led the price of domestically made vehicles to triple in past years. Meanwhile, the purchasing power of Iranian families has decreased, as salaries have not kept pace with rising prices. Iranian carmakers blame the surge in vehicle prices on currency fluctuations, specifically referring to the severe weakening of the Iranian rial following the imposition of Western financial and banking sanctions under Ahmadinejad. Now, with such penalties set to come off and the currency exchange rate largely stabilized, it is claimed that with new plans set in motion, the quality of domestically made vehicles will improve.