Iraq auto sales drop 28.6% in H1 2026 amid broad economic slowdown

Baghdad (IraqiNews.com) — New vehicle sales in Iraq dropped 28.6% year-on-year during the first half of 2026, totaling 59,264 units sold through official dealerships, according to a report by automotive data provider Focus2move released on Tuesday, August 11, 2026. The downturn marks a sharp contraction following years of strong expansion between 2021 and 2024, when annual sales peaked at 158,076 units. Market analysts attribute the drop to liquidity constraints, delayed public sector payrolls, and broader macroeconomic uncertainty across the country. Key Brand Performance & Market Share Breakdown Kia Motors: Maintained the market leadership spot with a 28% market share, despite a 27.8% decline in total sales volume. Toyota: Ranked second with a 22% market share, recording a 24% drop in deliveries. Nissan: Held third place, with sales falling 13.3%. MG: Placed fourth with an 8.9% market share, seeing sales decline 31.6%. Jetour: Advanced to fifth place with an 8.4% market share, bucking the industry trend with a 29.2% sales increase. Great Wall Motor (GWM): Achieved positive growth, with sales rising 6.9%. Hyundai: Experienced the steepest contraction among major global manufacturers, with sales plummeting 69.7%. The electric vehicle (EV) segment experienced a severe downturn during H1 2026, with sales falling 72% to represent just 1% of total automotive market share. Chinese automaker BYD led the EV niche with a 48.3% market share, followed closely by Toyota at 43.4%. While official figures reflect authorized dealership transactions, auto market observers note that Iraq’s grey market and used car showrooms suffered even heavier losses. Used car dealership owners estimate that sales volumes dropped between 40% and 50% compared to the same period in 2025, driven by reduced consumer spending power and tighter household budgets.