TEHRAN, Iran — A majority of car consumers in Iran complain about the low quality and high prices of vehicles produced by local manufacturers, according to a poll conducted by news website Khabar Online. Citing another poll, leading economic newspaper Donya-e Eqtesad reported Aug. 11 that more than half of Iranian car consumers think that the vehicles' quality does not justify their prices.
The two leading Iranian automakers Iran Khodro Co. (IKCO) and SAIPA both saw a sharp decline in sales last year. The situation began to deteriorate after a nationwide campaign called on citizens to boycott new domestically produced cars in protest of their low quality. Eventually, the government offered a stimulus package providing loans for potential consumers of Iranian-made cars. The package boosted sales without manufacturers needing to cut prices.