icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
29 Nov, 2022 06:40

Iran looks to enter Russian car market

Automakers plan to supply vehicles to Moscow after the exodus of foreign brands
Iran looks to enter Russian car market

Moscow and Tehran have signed a memorandum of understanding for Iranian car exports to Russia valued at $300 million, the head of the country's association of auto parts manufacturers, Mohammadreza Najafi-Manesh, said on Monday.

Iran Khodro, the largest carmaker in the Middle East, is eyeing the Russian market following the exodus of European, American, and Japanese brands.

Many foreign car manufacturers found it difficult to continue operations in the country after deliveries of cars and spare parts to Russia were stopped due to Western sanctions. 

The Iranian carmaker assembles revamped models of Chinese Haima and Dongfeng brands. Last year, the country launched the Tara sedan based on the Peugeot 301, while other new models using the Peugeot and Citroen as prototypes are coming.   

According to data from Russia’s Autostat agency, there were 10,400 Iran Khodro cars in Russia as of July 2022, which are represented by the Samand model (a Class C sedan), a car based on the Peugeot 405. 

Iran, which has been under Western sanctions for decades, has managed to develop its own automotive industry that caters to domestic demand. The country has also been forced to cut reliance on foreign car imports after parts and supplies were stopped when the US reimposed sanctions on the Islamic Republic in 2018.

For more stories on economy & finance visit RT's business section