Porsche is latest automaker to exit Iran

Porsche is the latest international automaker to exit Iran, following the likes of Hyundai and Toyota which have also recently pulled out of the country. Iran has the world’s 13th largest auto industry so exiting the market is no small deal for any automaker, even for niche brands like Porsche. About 1.46 million cars were sold in Iran last year, with about 200,000 imported, according to analysts at HIS Automotive. And for Porsche, its sales at its dealership in Tehran topped $17 million in the past few months alone, reports Fox News. International firms operating in Iran are not only faced with economic sanctions but also political pressure from advocacy groups rallying against the country’s nuclear efforts and current government. At the same time, demand for luxury and performance cars in Iran is dwindling as economic sanctions have eroded availability of credit. In response, most dealers in the country have stopped making orders for new cars as current stock piles up. With the combination of these two factors, it’s likely that we’ll see more firms pull out in the coming months.