Iran International
Lovingly restored luxury classic and vintage cars, often showcased at events across the country, evoke nostalgia for many Iranians, reminding them of the 'good old days' when a Western lifestyle was within easy reach.
Unlike Cuba where classic cars are almost exclusively American-made imports before the country’s 1959 Revolution, there are around 7,000 classic American, British, and other cars in Iran most of which date back to the 1960s and as late as the Islamic Revolution of 1979.
To the enthusiasts, these cars and vintage imported home appliances such as fridges evoke nostalgic memories of the 1970s oil boom and huge imports of luxury items.
While Western exporters and manufacturers rushed to get a market share in the 1970s Iran with a booming economy and open-door economy, things drastically changed in 1979 when a coalition of Islamist clerics and anti-West leftists took over the country.
Many classic and vintage cars have been meticulously restored and are often displayed in various cities at special events organized by enthusiasts’ clubs. Almost none, however, are in active use because of a 2007 pollution ban and fuel restrictions resulting from fuel rationing.
Owners of a few hundred of these cars have managed to obtain “historical” plate numbers that allow them to drive them at special events or to sell them on but many can neither be used nor sold.
The Islamic Republic also has a Classic Car Museum where the luxury and several truly one-of-a-kind cars belonging to the former royal family are on display. These include a gilded Pierce Arrow A built for the founder of the Pahlavi Dynasty, Reza Shah, and a gilded Chrysler K-300 made for his son Mohammad-Reza Shah.
In the 1970s, the streets of major Iranian cities were lined with Cadillacs, Chevrolets, Mercedes, Jaguars, Alfa Romeos, and other luxury cars, while ordinary citizens drove their affordable, locally assembled Paykans (Hillman Hunters), purchased on credit with small monthly payments.
Many luxury foreign cars pre-dating the Islamic Revolution were shipped to the country during the oil boom of the 1970s by students studying abroad and government officials. These people were allowed to ship a car home tax-free when they returned home, for personal use or to sell at a good profit. In the late 1970s, those who traveled to Europe could also buy a car and drive back to avoid full import taxes.
In May 2022, Iran's Motorcycle and Automobile Federation became the 30th country to register its vintage cars with the Federation International des Vehicules Anciens (FIVA), a partner of UNESCO with consultative status, making it possible for the owners to use the federation’s international identification facilities for global registration of vintage cars in Iran.
But when it came to American cars, besides imports, several models of Cadillacs, Buicks, and Chevrolets were assembled in Iran by Iranian manufacturers in the 70s.
Buick Sky Lark sedan, for instance, was assembled by General Motors Iran (now Pars Khodro) between 1975 and 1979. The same company also rolled out its first Chevrolet Nova in 1976.
It was nearly two decades and a revolution later that Japanese, German, Korean, and French companies began producing Nissan, Mazda, Mercedes Benz, Kia, Hyundai, Peugeot, and Renault in Iran.
The UN sanctions imposed on Iran since 2005 brought these to a standstill. Despite the lifting of these sanctions in 2016, European and East Asian manufacturers have avoided investment in Iran and only Chinese car manufacturers have been active in the country.
At the center of this storm is the newly installed Pezeshkian administration, which has sent mixed signals about its intentions, further exacerbating the public's concern.
Abdolnaser Hemmati, the Minister of Economy, has tried to calm the waters, stating in a televised interview that no shocking economic measures should be taken, as society cannot bear the brunt of a gasoline price hike or other economic shocks. He emphasized that “any decision to raise gasoline prices must take into account its inevitable inflationary effects.”
But how long can the government spend billions of dollars, selling the cheapest gasoline at around 2 cents a liter or less than 10 cents a gallon, especially when it must import some of it to make up for the shortfall in domestic production.
Yet, Hemmati's words stand in contrast to those of the head of government, Massoud Pezeshkian. In a meeting just days earlier, the new president made it clear that he sees no logic in continuing to subsidize gasoline. “There is no logic in buying gasoline at the open market dollar rate and selling it at a subsidized price,” he said, questioning whether the current policy could continue. His comments only deepened the sense of uncertainty and fear that a price increase might be imminent.
These contradictory remarks have left Iranians wondering what to expect. On one hand, Mohammadreza Aref, First Vice President, reassured the public that the government would not make “any hasty decisions” regarding a gasoline price increase. On the other, Pezeshkian's previous statements, including those made during his election campaign, indicate a belief that the current subsidy system is untenable. In a conversation with Ali Khamenei's website, Pezeshkian argued that Iran’s energy imbalance, where gasoline is purchased for billions of dollars and sold at a fraction of its cost, cannot continue indefinitely.
Pezeshkian’s inconsistent messaging, particularly during the election debates, has only added to the confusion. While he initially supported removing subsidies and raising prices to 250,000 rials (about 42 cents) per liter, he later backtracked, saying that his remarks were taken out of context and that, in governance, such decisions must be left to experts. However, these contradictions have done little to quell public fear, especially given Iran’s recent history.
The specter of past fuel protests looms large. Under Mahmoud Ahmadinejad, the quadrupling of fuel prices led to widespread unrest, with angry citizens setting fire to gas stations in Tehran. Similarly, Hassan Rouhani’s decision to triple gasoline prices sparked protests across the country, resulting in the deaths of nearly 1,500 people as the government suppressed dissent.
Currently, rationed gasoline is sold at 15,000 rials (2.5 cents) per liter, while non-rationed gasoline is sold at 30,000 rials (5 cents) per liter. For many, who earn less than 200 dollars per month a large increase could push an already struggling population to the brink.
Some believe that the Pezeshkian administration’s indecision is not just a political misstep; but it is a recipe for disaster. The country’s economic situation is dire, and people’s livelihoods are hanging by a thread. Rouydad24 news website in Tehran wrote on Saturday that “Any sudden price hike could lead to irreparable damage.”
As economic expert Mehdi Robati noted in a recent tweet, “Analyses based on the increase in gasoline prices and seeing this issue from a one-dimensional perspective are a banana peel under the feet of the Islamic Republic and will not bring any benefit to the country.”
Moreover, public trust in the government is at an all-time low. Many Iranians believe that if there were no fire, there would be no smoke—meaning if the government truly had no plans to raise gasoline prices, there would be no reason to discuss it. Instead, as reported by Rouydad 24, it appears that some advisors are attempting to prepare the public: shock them with the prospect of a significant price hike, only to then offer a gradual increase as a “compromise.”
This strategy is unlikely to succeed. The anger is palpable, with people expressing their discontent on social media. One viral video shows a farmer lambasting Pezeshkian’s comments, saying, “It’s not logical for you to increase gasoline prices and make us villagers and farmers poorer and more desperate by the day.”
Observers say the contradictions within the Pezeshkian administration are more than just political blunders—they are fuel for a fire that, if ignited, could engulf the nation in unrest once again.
The workers, some as young as 13, are being exploited by municipal contractors who prioritize cost-cutting over human dignity, said a report by Khabaronline website.
In neighborhoods across Tehran, the presence of Afghan children laboring in municipal services is a reminder of the city’s reliance on cheap, undocumented labor.
These children, who have fled conflict and instability in their home country, find themselves in a harsh new reality. Employed to clean streets, collect waste, and perform other menial tasks, they are paid a fraction of what Iranian workers earn and often receive their wages sporadically.
Lacking basic identification documents like bank cards, the children are voiceless. They cannot lodge complaints about unpaid wages or unsafe working conditions. Their plight is compounded by their invisibility in official statistics and reports, making them an easy target for exploitation.
Tehran City Council member Nasser Amani warned: “The oversight of municipal contractors is insufficient. I have seen firsthand that contractors employ very young foreign nationals, including children as young as 13 or 14 years old,” Amani stated.
Mohammad Amin Tavakkolizadeh, Tehran Municipality’s Deputy for Social Affairs, announced last year that a new plan would be implemented to remove children from municipal labor. However, this commitment has yet to be realized. Despite assurances, Afghan children continue to work under conditions that defy both legal and ethical standards.
“The promises made about eliminating child labor have not been fulfilled,” Amani said. “Municipal regulations are being flouted, and the children are still being exploited by contractors who are not held accountable.”
Iran's Labor Law prohibits the employment of children under the age of 15. Those aged 15 to 18, classified as "young workers," must undergo regular medical examinations conducted by the Ministry of Labor to be eligible to participate in the workforce.
The plight of Afghan children in Tehran is part of a broader pattern of exploitation involving foreign labor. The children work under dangerous conditions and receive inadequate compensation, often delayed for months. Their situation stands in contrast to Iranian workers, who are frequently deterred from such roles due to insufficient wages and job insecurity.
Amani pointed out: “The lack of regular and adequate payments, along with the absence of proper insurance, has led to a situation where Iranian workers are unwilling to take up such jobs. This reliance on cheap, undocumented labor perpetuates the cycle of exploitation.”
“Municipal officials currently say that urban service workers are paid between 120 to 130 million rials (about $200) per month, but we have checked and found that this is not the case. Some urban service workers and especially children receive between 40 to 60 million rials (70 to $100), or at most 70 million rials (115$),” added Amani.
The situation comes at a time when estimates suggest up to 10,000 Afghans enter Iran daily. This influx has pushed the Afghan population in the country to around 10 million, constituting more than 10% of Iran's total population.
The growing presence of Afghans has sparked a backlash from Iranians, many voicing concerns about the economic and social impact of accommodating such a large number of migrants, particularly as Iran grapples with its own economic crisis, declining public services, and rising unemployment.
