Chinese cars have rapidly gained ground in the Kurdistan Region’s automotive market. A University of Sulaimani study shows that imports have increased sharply in recent years.
The research examined consumer demand across Sulaimani and Halabja provinces. Chinese vehicle imports reached 2,030 units between 2014 and 2019.
However, imports climbed to 16,121 vehicles between 2020 and 2025. Consequently, Chinese manufacturers have gained a much stronger position in local dealerships.
Dealers in Sulaimani report particularly strong demand for Chinese vehicles. Karwan Ali said customers increasingly prefer these cars because of their quality and affordable prices.
He added that his dealership sells around 15 Chinese vehicles each day. Meanwhile, MG and BYD remain among the most popular brands among consumers.
Binar Hiwa, a University of Sulaimani professor involved in the study, identified several reasons. He said competitive prices and extensive features have encouraged customers to choose Chinese vehicles.
Furthermore, improvements in design, technology, and equipment have strengthened their appeal. Therefore, Chinese manufacturers now compete more directly with established European, Japanese, and Korean brands.
However, transportation costs have created additional challenges for importers and consumers. Maritime shipping expenses have reportedly increased significantly because of ongoing transportation difficulties.
Shipping costs have risen from approximately $3,000 to $9,000 per vehicle. Consequently, importers face higher expenses, while customers increasingly encounter higher retail prices.
Some BYD models have already experienced notable price increases at regional dealerships. Their prices reportedly increased by between $2,000 and $2,500 in recent months.
Nevertheless, demand remains strong despite these additional costs. This continued interest suggests that consumers still consider Chinese vehicles competitive within the regional market.
The growing market could also create opportunities for dealerships, maintenance centers, and spare-parts businesses. Additionally, stronger competition could encourage manufacturers to improve warranties and after-sales services.
However, long-term demand will depend on reliability, maintenance costs, spare-parts availability, and resale values. Transportation conditions will also remain important for future vehicle prices.
Overall, the University of Sulaimani study highlights a major transformation in consumer preferences. Chinese vehicles have moved from limited market participation toward becoming major competitors.
Going forward, dealerships will likely adjust their inventories according to changing customer demand. Ultimately, increased competition could provide consumers with greater choice and more competitive automotive products.