Iran has banned the importation of luxury cars as the country faces mounting economic pressures and growing public frustration over expensive vehicles.

According to Iranian media reports, President Masoud Pezeshkian announced the ban on Wednesday.

The reports said the measure was linked to concerns over foreign currency outflows as Iran continues to grapple with a severe economic crisis.

It said that in spite of the economic difficulties, residents of major Iranian cities have reported an increase in luxury vehicles in affluent neighbourhoods since U.S. and Israeli forces launched military operations against Iran on February 28.

Chinese-made electric vehicles and sport utility vehicles (SUVs) have also become increasingly common on the streets of major cities.

Some wealthy Iranians view expensive vehicles as an investment because used car prices tend to remain relatively stable.

Car prices in Iran are generally high. Even small and entry-level models cost more than $11,000, putting them beyond the reach of many citizens whose average monthly income is only a few hundred euros.

Fuel, however, remains very cheap in the oil-producing country, with petrol costing the equivalent of only a few cents per litre. 

(dpa/NAN)