Iran's motorcycle market has seen prices surge about 162% on average over the past year, outpacing both general inflation and the car market as the effective removal of subsidised foreign currency drives up import costs.

For years, sharp rises in car prices have pushed many buyers towards motorcycles, but that market has now become one of the country's most inflation-hit, according to a review of pricing for the highest-volume models.

Prices for the best-selling models rose about 162% on average between July 2025 and July 2026. Some climbed far more steeply: the TVS Wego 110 by more than 218%, the SYM JX249 by around 209% and the Galaxy TN110 by around 191%. Even the smallest increase among the models reviewed was about 130%, still well above the general inflation rate.

By comparison, Iran's Statistical Centre put the country's overall year-on-year inflation at about 88.6% and point inflation for vehicle purchases at about 124.1%. Among the main goods and services groups, only food and tobacco recorded higher inflation than motorcycles, placing the sector third for the steepest price rises over the past year.

Industry figures point to the effective removal of the official exchange rate from the sector's supply chain as the main driver. No foreign currency has been allocated for motorcycle-related import orders since June 2025, they say, forcing importers and manufacturers to meet their currency needs through privately sourced foreign exchange or export proceeds, in effect at open-market rates.

Component imports that were handled last year at around IRR700,000 to the dollar are now settled at IRR1,800,000 to IRR1,900,000, an increase of close to 160% that has fed straight into finished motorcycle prices. Because most components are imported, any rise in the exchange rate feeds through to the final product with only a short lag.

A sharp jump in transport costs has added to the pressure. After import routes shifted from sea to overland freight in recent months, the cost of shipping a container of components from China to Iran has risen from around $2,000 to between $10,000 and $12,000, more than a fivefold increase.

Although freight accounts for only about 5% of the final price, that rise, combined with the weaker currency and other production costs, has added further pressure that is ultimately passed to consumers.

Analysts say a marked fall in motorcycle prices is unlikely until the sector's currency supply is resolved and logistics costs return to normal. A market once seen as a cheaper alternative to the car has itself been hit by unusually steep price rises, eroding the purchasing power of a large share of would-be buyers.