In the 1960s and 1970s, the auto industry in Iran took off with the establishment of several domestic automakers. During this period, the Iranian government implemented an import substitution policy to reduce the country’s dependence on foreign goods and boost domestic production. In addition, the government provided subsidies and other forms of support to local automakers, and by the 1980s, Iran had become the largest automaker in the Middle East.

However, the industry suffered a setback in the 1980s and 1990s due to economic sanctions, political instability and mismanagement. As a result, many of the country’s automakers were forced to halt or scale back production, and the industry struggled to keep up with rapid technological advances.

However, in recent years, the auto industry in Iran has experienced a resurgence, mainly due to the easing of economic sanctions and the implementation of a series of economic reforms. Today, Iran is once again one of the largest automakers in the region, with several major domestic manufacturers producing a range of vehicles for both the local and export markets.