In Iran, the cost of a new car can be equivalent to 22 thousand rials, but it can only be obtained by winning a state vehicle lottery. The Iranian market operates under two parallel pricing systems.
The first system is the factory price, set by the government below the market rate to formally maintain car affordability. Since demand for such prices is very high, the state has organized a national lottery: citizens register online, often making a prepayment to claim the right to purchase.
The second system is the open market, where the same car is valued significantly higher. It is through this channel that the compact Saipa Quik S, equipped with an 88 horsepower engine and based on the old Kia Pride platform, reaches a cost of about 22 thousand rials for lottery winners.
At the opposite end of the spectrum, imported cars have become luxury items. Only a small number of state-affiliated companies and intermediaries can import vehicles, and the combination of taxes can increase the final price by up to 200%, according to an Al Jazeera report published in mid-September. For example, the Toyota Land Cruiser VXR 2026 sells there for approximately 1.47 million rials, whereas the same model costs about 440 thousand rials in the United Arab Emirates.
Due to the decline of the local currency, Iranians no longer view cars as a depreciating asset; they are now seen as a hedge against inflation, on par with gold. Al Jazeera analyzed the case of an office worker with a modest income who owns an old Peugeot 206 with a manual transmission, valued at approximately 22.3 thousand rials. Replacing it with an automatic 207 would cost approximately 62.3 thousand rials, exceeding more than twenty months of full salary, even after selling the old car.
Prices for local models are also high: the Shahin sedan costs about 69 thousand rials, and the Reera crossover exceeds 95.7 thousand rials. The current war has exacerbated the situation: according to Al Jazeera, prices for domestic cars have risen by 40% to 80% since the start of the conflict, and some models have increased by more than 130% compared to September 2025.
For comparison, the cheapest new car in Brazil, the Fiat Mobi Like, starts from approximately 80 thousand rials, which is more expensive than the Iranian Shahin. However, here the buyer does not need to win a lottery to qualify for payment.
These three models reflect the recent history of Iranian industry. The 2017 Saipa Quick is the oldest in spirit: it uses the X200 platform, which is a descendant of the 1986 Kia Pride—a relative of the Mazda 121 and Ford Festiva. Produced under license as Saipa Pride, this car has exceeded 7 million units over 27 years and has become a synonym for popularity in the country.
The Shahin attempts to change this trend. Introduced in 2018 as Roham and produced since late 2020, it is the first Saipa sedan on a platform developed within Iran, although it is based on the Toyota Yaris. It features a 112 horsepower engine and 18.1 kgm of torque.
The Reera emerged in a complex situation. When Peugeot left the country after the return of US sanctions in 2018, two unfinished projects remained: one became the Tara sedan, based on the 301, and the other—the Reera crossover, derived from the 2008 model. Iran Khodro presented it in 2022 and began production only in 2024, equipping it with a 162 horsepower engine and 24.5 kgm of torque.