TEHRAN - The secretary of Iran’s Home Appliance Industries Association said domestic production of home appliances is expected to reach 20 million units by the end of the current Iranian calendar year (late March). The significant increase in production follows the U.S. withdrawal from the JCPOA and the exit of foreign brands from Iran, indicating an improvement in both quality and quantity of local products.

Nasrin Ojaghi told IRNA in an exclusive interview that, according to the Seventh National Development Plan, production of home appliances is projected to grow by 8.0 to 10 percent in the current year. Previously, the country’s annual production stood at around 6.0 to 7.0 million units.

Despite this growth, the market is facing stagnation due to a decline in purchasing power. Ojaghi expressed hope that measures taken by authorities would help revive the market next year.

She noted that due to economic difficulties, including currency fluctuations and reduced purchasing power, most television and outdoor advertisements in the previous year were focused on installment sales of home appliances. This trend highlights the demand crisis and increasing competition among domestic manufacturers, as the sector remains highly dependent on consumers' financial conditions. However, local producers have managed to adapt by offering products tailored to different consumer preferences and budgets.

Ojaghi also pointed to energy challenges in industrial zones, stating that power and gas outages in certain regions have caused partial shutdowns of many manufacturing units.

Regarding smuggling, the secretary of the association stressed that nearly 30 percent of home appliances in Iran enter the market illegally, avoiding customs duties, insurance, and taxes. She urged for regulatory reforms to create a fairer competitive environment for domestic manufacturers.

On exports, Ojaghi noted that Iranian home appliances are shipped to neighboring countries such as Pakistan, Iraq, Russia, and Kazakhstan. However, high transportation costs and sanctions-related restrictions pose serious challenges to export growth.

She highlighted foreign currency allocation as one of the main issues for manufacturers, explaining that it takes nearly four months from the time of order registration to receive allocated funds. Additionally, liquidity shortages and working capital constraints remain key concerns for producers, requiring urgent government intervention to facilitate financial support.

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