Iraqi Car Sales Drop 34% in First Quarter of 2026

BAGHDAD, Iraq — New vehicle sales in Iraq fell 34.3 percent in the first quarter of 2026 to 30,838 units, according to data from Focus 2 Move. The decline marked a significant drop compared to the same period the previous year. The contraction was linked to macroeconomic volatility that weighed on import costs and commercial liquidity. Regional geopolitical tensions, energy bottlenecks and fluctuating oil revenues contributed to the sales loss across the country. South Korean and Japanese manufacturers retained their structural market share despite double-digit losses. China's Jetour brand bucked the broader trend, posting strong growth and standing apart from the overall market contraction. Electric vehicle sales collapsed 79.3 percent during the same period, with the segment's market share falling to just 1 percent. Experts attributed the sharp decline to limited charging infrastructure, grid constraints and consumer reluctance toward alternative powertrains during a period of economic uncertainty. Analysts forecast Iraq's gross domestic product could contract by as much as 6.8 percent throughout 2026.