Iran bans luxury car imports to protect foreign exchange

President Massoud Pezeshkian has ordered a ban on the import of luxury cars into Iran to address economic challenges. The decision follows criticism regarding the high cost of these vehicles, which remain unaffordable for the majority of the population.

According to reports from Iranian media, the ban aims to curb the outflow of foreign exchange reserves. These funds are needed for more urgent imports and essential supplies. The measure also addresses the trend of wealthy citizens using expensive vehicles as investments due to the relatively stable prices of used cars.

In recent times, luxury vehicles and electric cars from China have become increasingly visible in wealthy urban areas. The ban comes amid a broader economic crisis where even entry-level models are prohibitively expensive for many citizens, given average monthly wages.