Arka Pratama The Electric Vehicle Market in Iraq: A Comprehensive Overview
Iraq, a nation with a rich history and a developing economy, is gradually turning its attention towards sustainable transportation. The country, with its capital in Baghdad, is home to over 42 million people. The official currency is the Iraqi Dinar (IQD), and the official languages are Arabic and Kurdish. As with most countries in the region, Iraq follows a right-hand traffic system. For vehicle importation, while specific data on the main ports is to be confirmed, imports often arrive through neighboring countries before reaching Iraq.
The regulatory landscape for electric vehicles in Iraq is evolving, showing promising signs for the future of e-mobility. The Kurdistan Regional Government (KRG) has taken a significant step by completely lifting customs duties on the import of electric vehicles, a move designed to make EVs more affordable and encourage their adoption. For the rest of Iraq, import duties and taxes for vehicles are generally in the range of 5% to 15%, though specific rates for EVs from the central government are still being clarified. In addition to tax exemptions, the KRG has also removed environmental fees during the registration process for EVs. While the central government has indicated plans to introduce incentives to support EV adoption, concrete details on rebates or subsidies are yet to be announced. A key regulation for all vehicle imports into Iraq is the age restriction, which generally prohibits the importation of vehicles older than two years.
The electric vehicle market in Iraq, though still in its early stages, is demonstrating remarkable growth. In the first quarter of 2025, the EV market experienced a surge of 41.6%, capturing 3% of the total vehicle sales in the country. While exact annual sales figures for EVs are not yet consolidated, the overall Iraqi vehicle market saw approximately 127,749 units sold in 2023, suggesting a nascent but rapidly expanding EV segment. Chinese brands are making a strategic entry into the market, capitalizing on the growing demand for electric mobility. While specific top-selling EV models are not yet tracked in detail, the broader automotive market is dominated by brands like Toyota and Kia. Among the types of electric vehicles, Plug-in Hybrid Electric Vehicles (PHEVs) currently appear to hold the largest share of the electric passenger car market, offering a transitional option for consumers.
One of the primary challenges for widespread EV adoption in Iraq is the limited charging infrastructure. The number of public charging stations across the country remains low, with estimates suggesting only a few dozen are currently operational, primarily concentrated in major cities like Baghdad and Erbil. The breakdown between AC charging stations and DC fast charging stations is data to be confirmed. A few pioneering companies, such as Green Charging and Kvolt, are beginning to establish a presence as charging network operators. Additionally, some automotive brands like BMW and GM are installing charging points at their dealerships and other strategic locations to support their EV-owning customers.
The local EV industry is beginning to take shape, supported by government initiatives aimed at fostering domestic production. A landmark development is the establishment of the Orok factory in Kirkuk, which is poised to become Iraq’s first assembly plant for electric, gasoline, and diesel vehicles. This project, launched in late 2025, signals a strong commitment from the government to build a local manufacturing ecosystem. On the infrastructure side, the local manufacturing of charging equipment is still a nascent sector, with a few local technology companies beginning to explore this space. These government-led initiatives are crucial for creating jobs, transferring technology, and reducing the nation’s reliance on imported vehicles.
In conclusion, the electric vehicle market in Iraq holds significant potential for growth. The combination of government support, particularly the progressive policies in the Kurdistan Region, and a growing consumer awareness of the benefits of e-mobility sets a positive outlook. Key opportunities for EV importers lie in introducing a diverse range of affordable electric models, especially SUVs and sedans that are popular in the region. As the charging infrastructure develops and local production capabilities expand, Iraq is on a path to becoming an increasingly important market for electric vehicles in the Middle East. The journey is just beginning, but the initial momentum is strong, promising a greener automotive future for the nation.
