Iraq ICE & Electric Passenger Vehicle Market size is anticipated to grow at a CAGR of 6.5% during 2023–2029

On the basis of type, internal combustion engine (ICE) accomplished the highest revenue share in Iraq ICE & Electric Passenger Vehicle Market – 6Wresearch

In 2022, new internal combustion engine (ICE) passenger vehicles dominate Iraq's market due to an underdeveloped electric vehicle ecosystem, limited infrastructure, abundant oil reserves, and concerns about electric vehicle range. The widespread availability of conventional fuel, the absence of strong government incentives, and economic conditions further contribute to the prevailing market share of ICE vehicles.

According to 6Wresearch, the Iraq ICE & Electric Passenger Vehicle Market size is anticipated to grow at a CAGR of 6.5% during 2023–2029. The demand for Chinese car brands has increased significantly in recent years owing to their features and quality at competitive prices. This factor greatly increases the TAM (Total Addressable Market) for passenger vehicles in Iraq. Thus, the increasing Chinese penetration would serve as a major driver for the market in the coming years.

The growing Iraqi economy and GDP per capita income are driving increased demand for passenger cars, transforming them from luxury to necessity, especially in major cities like Baghdad, Erbil, and Mosul. Furthermore, the Iraqi government is working with UNDP to support the country’s economic reform agenda which would propel the ICE & electric vehicle market in coming years. The lack of government policies for the automotive sector along with the underdeveloped ecosystem in Iraq could hinder the growth of ICE & electric passenger vehicles growth in the short and long term.

According to Abhishek Mishra, Senior Research Analyst, 6Wresearch, in 2022, SUV held the maximum market share in Iraq ICE & Electric Passenger Vehicle Market as the average size of a family is 6.3 persons, household dynamics play a significant role in shaping consumer preferences, particularly in the passenger vehicle market. With an average family size exceeding six individuals, there is a natural inclination toward vehicles that offer ample space and versatility. SUVs, with their spacious interiors and seating capacity, become an ideal choice for families seeking a vehicle that accommodates their size. the positive outlook for the continued demand for SUVs in the passenger vehicle market underscores their sustained popularity, fueled by their ability to cater to the specific needs of Iraqi consumers with larger families.

The Iraq ICE & Electric Passenger Vehicle Market (2023-2029) report provides an in-depth analysis with 23 figures and 11 tables, covering 89 pages. The report comprehensively covers the market by type, vehicle type, ICE fuel type, electric vehicle type and region. The report provides a detailed as well as unbiased analysis of the ongoing drivers, opportunities/high growth areas, and trends of the sector which are projected to support the stakeholders to align as well as devise their market strategies as per the latest and future market dynamics.