--- # System prepended metadata title: Iraq Vehicle Market at USD 10 Billion as Kia Leads 28% Share and EV Sales Surge 29% | Ken Research --- ![Iraq New Vehicle and Used Vehicle Market](https://res.cloudinary.com/dskso7wck/image/upload/v1779132870/microblogs/iraq-vehicle-market-blog113.png) Iraq's USD 10 Billion Vehicle Market: Kia Claims 28% Share as 160,737 Units Sold and EV Adoption Accelerates ============================================================================================================ Iraq's vehicle market has entered a distinct competitive phase, shaped by brand realignments, urbanization-driven demand, and a policy-backed EV transition that is beginning to move volume. With **160,737 new vehicle units** sold in 2025 and a total market valued at **USD 10 billion**, the structural drivers span youth demographics, digital commerce, and government infrastructure mandates. The [**Iraq New Vehicle and Used Vehicle Market Report**](https://www.kenresearch.com/industry-reports/iraq-new-vehicle-and-used-vehicle-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation) by [**Ken Research**](https://www.kenresearch.com/?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation) delivers the full segmentation and competitive breakdown across new, used, gasoline, and electric segments. Kia Claims 28% Market Share in Iraq as 160,737 New Vehicles Sold in 2025 and Toyota Falls to Second --------------------------------------------------------------------------------------------------- The most significant structural shift in Iraq's vehicle market in 2025 is the reversal of Toyota's long-held dominance. As per Focus2move and Best Selling Cars Blog data, **Kia reclaimed the top position with 28% overall market share** and a **19.1% sales increase**, while Toyota dropped to second with **20.7% share** and a **29.6% sales decline**. The total Iraq new vehicle market reached **160,737 units in 2025**, virtually flat at **\-0.4%** from 2024. The Kia Frontier led all models with **11.1% market share**, displacing the Toyota Hilux at **8.7%**. Operators benchmarking MENA automotive dynamics will find a parallel in the [**Egypt Used Car Market**](https://www.kenresearch.com/industry-reports/egypt-used-car-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation) analysis, where Korean brands have similarly disrupted Japanese market leadership over a comparable period. * **Kia Frontier:** leads Iraq's best-seller list at **11.1% model share**, up from **8.8%** in 2024 with a **25.6%** year-on-year volume increase * **Q1 2025 performance:** market grew **24.1%** year-on-year in Q1, driven by **Kia's 26.1%** increase and Chinese brand expansion * **Japanese imports:** Iraq's Japanese vehicle import bill reached **USD 700 million** annually, with Korean models now reducing that dependency Online Platforms Drive 20% of Used Vehicle Transactions as Iraq's Fragmented Market Consolidates ------------------------------------------------------------------------------------------------ Iraq's used vehicle segment remains the structural backbone of overall market volume. As per Ken Research market tracking, online platforms including iQ Cars and OpenSooq now account for **approximately 20% of used car transactions**, doubling from pre-2019 levels on the back of rising mobile internet penetration. With **over 60% of Iraq's population under 25** and urbanization projected to reach **73% by 2030**, first-time buyers drive disproportionate used vehicle demand. Informal distribution channels still dominate parts and transactions, limiting price transparency. Operators examining Middle East automotive aftermarket dynamics will find the relevant data in the [**GCC Automotive Aftermarket**](https://www.kenresearch.com/gcc-automotive-aftermarket-industry-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation) analysis. * **Baghdad, Basra, Erbil:** three cities dominate vehicle sales, with Baghdad as primary trade hub and Basra anchoring logistics fleet demand * **Youth buyer segment:** **1.5 million** estimated annual potential buyers as per capita income rises toward **USD 4,660** * **Fuel type split:** gasoline dominates; diesel serves commercial fleets; electric and hybrid vehicles hold **2%** volume share Evaluating Iraq's used vehicle and new vehicle competitive dynamics for sourcing or market entry? [**Download Sample Report**](https://www.kenresearch.com/sample-report/iraq-new-vehicle-and-used-vehicle-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation) for brand share data and segment forecasts. EV Sales Surge 28.8% in Iraq as Cabinet Resolution 23055 Cuts Duties on Electric and Hybrid Vehicles ---------------------------------------------------------------------------------------------------- Iraq's EV transition is moving faster than anticipated. As per Best Selling Cars Blog data, Iraq's electric vehicle segment **surged 28.8% in 2025**, reaching **2% of total vehicle sales**, while Q1 2025 saw **EV sales grow 41.6%**, lifting the quarterly share to **3%**. Toyota dominates the EV sub-segment with **92.8% of electric vehicle sales**. Cabinet Resolution No. 23055 provides tax exemptions and reduced import duties for EVs and hybrids. Iraq plans to install **500 public EV charging stations by 2029**, with **50 stations targeted by 2026**. Chinese brands including BYD and Changan are entering via distribution partnerships. Operators benchmarking regional service positioning will find complementary data in the [**Saudi Arabia Automotive Paint Shops and Body Repair Centers Market**](https://www.kenresearch.com/saudi-arabia-automotive-paint-shops-body-repair-centers-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation) analysis. * **EV duty policy:** Cabinet Resolution No. 23055 eliminates a major cost barrier; formal framework for subsidies and charging rebates still being finalized * **Chinese EV entry:** BYD, Changan, and Chery expanding networks via Abdul Latif Jameel partnerships and independent distributors in Baghdad, Erbil, and Basra * **Domestic production:** Iraq's Military Industry Board plans the country's first domestically manufactured EV, priced from **5 million Iraqi dinars** Iraq Vehicle Market Outlook to 2030: 6.5% CAGR on Youth Demographics and Urban Infrastructure --------------------------------------------------------------------------------------------- As per Ken Research market modelling, Iraq's ICE and electric passenger vehicle market is projected to grow at a **6.5% CAGR through 2029**, underpinned by a **USD 10 billion** government infrastructure program targeting road connectivity and urban transit. With urban population projected to reach **73% by 2030**, demand will expand across secondary cities including Mosul, Sulaymaniyah, and Kirkuk. The National Development Plan 2023 to 2027 designates automotive manufacturing as a strategic sector, targeting local CKD and SKD assembly incentives. Operators benchmarking urbanization-driven mobility markets will find structural parallels in the [**Thailand Shared Vehicles Market**](https://www.kenresearch.com/thailand-shared-vehicles-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation) report. * **CAGR outlook:** Iraq ICE and electric vehicle market grows at **6.5% CAGR (2023 to 2029)**, with EV sub-segment outpacing at multiples of the overall rate * **Infrastructure mandate:** government **USD 10 billion** road and transport investment program enhances connectivity across all five major urban corridors * **Financing gap:** only **23%** of Iraq's population accesses formal banking, limiting vehicle financing and sustaining used vehicle dominance Mapping your automotive market entry or competitive positioning in Iraq? [**Iraq New Vehicle and Used Vehicle Market Report**](https://www.kenresearch.com/industry-reports/iraq-new-vehicle-and-used-vehicle-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation) delivers complete segment forecasts, brand share, and demand driver data. Conclusion ---------- Iraq's vehicle market is at an inflection point: **160,737 units** sold in 2025, a total market of **USD 10 billion**, and Kia's ascent to **28% share** signal that brand hierarchies are now structurally contestable. The **6.5% CAGR** forecast through 2029 is anchored in youth demographics, urban expansion, and EV policy momentum. The **28.8% EV surge** and Cabinet Resolution 23055 duty framework represent a policy inflection that will compound through the forecast window. Access the [**Iraq New Vehicle and Used Vehicle Market Report**](https://www.kenresearch.com/industry-reports/iraq-new-vehicle-and-used-vehicle-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation) from Ken Research for the full competitive breakdown and segment forecasts. Frequently Asked Questions -------------------------- ### Q1: What is the total size of Iraq's vehicle market in 2025? As per Ken Research market modelling, Iraq's total new and used vehicle market is valued at **USD 10 billion**. New vehicle sales reached **160,737 units in 2025**, essentially flat at **\-0.4%** year-on-year, with Q1 2025 showing a stronger **24.1% growth** signal driven by Kia and Chinese brand expansion. ### Q2: Which brand leads Iraq's automotive market in 2025? Kia reclaimed the top spot in Iraq's automotive market in 2025 with **28% overall market share**, driven by a **19.1% volume increase**. Toyota fell to second place at **20.7% share**, with sales declining **29.6%**. Operators benchmarking emerging market used car brand dynamics will find a parallel in the [**South Korea Used Car Market**](https://www.kenresearch.com/industry-reports/south-korea-used-car-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation), which tracks how Korean OEMs leverage home-market pricing advantages in export markets. ### Q3: How is Iraq's EV market developing in 2025? Iraq's EV segment grew **28.8% in 2025**, reaching **2% of total vehicle sales**. Q1 2025 showed an even sharper **41.6% surge**, lifting the quarterly EV share to **3%**. Toyota holds **92.8% of EV sales**. Cabinet Resolution No. 23055 provides duty exemptions, and **500 public charging stations** are planned by 2029, with **50 operational by 2026**. ### Q4: What are the main demand drivers for vehicles in Iraq? Key drivers include **60%+ of the population under 25** creating a large first-time buyer cohort, urbanization reaching **73% by 2030**, and **USD 10 billion** in government infrastructure spending improving road connectivity. Rising per capita income approaching **USD 4,660** is expanding the addressable buyer base. A comparable profile is tracked in the [**Myanmar Used Car Market**](https://www.kenresearch.com/myanmar-used-car-market?utm_source=HackMD&utm_medium=Referral&utm_campaign=Automation), where youth demographics similarly anchor demand. ### Q5: What challenges limit Iraq's automotive market growth? Regulatory inconsistency across provinces fragments distribution and dealer planning. Only **23%** of Iraq's population has access to formal banking, limiting vehicle financing penetration. Informal channels dominate used car transactions, reducing price transparency. Political instability in certain regions periodically affects consumer confidence and purchasing activity.