Iran’s leading automaker wants to prioritize exports to Russia as both countries are under Western economic sanctions, Iran Khodro CEO Mehdi Khatibi said, according to the International Business Times.
The conversation took place during Iran Khodro’s presentation of the latest model of the Rira crossover at a factory west of Tehran.
“We have had good negotiations with Moscow. The Russian market with its opportunities will be one of our important markets. We will start exporting this year,” he said.
Rira crossover presentation
Sunday’s announcement relates to Russian President Vladimir Putin’s visit to Tehran in July and a meeting with Iranian counterpart Ibrahim Raisi and the country’s supreme leader, Ayatollah Ali Khamenei.
Russia has been subject to increasingly severe sanctions since the launch of a special operation in Ukraine in February, and Iran has been under sanctions for nearly 40 years. Iran has been through several waves of sanctions all along – they were either weakened or re-strengthened.
The two countries have responded to the sanctions by expanding cooperation in key areas to mutually support the economy.
Iran Khodro’s vice president, Kianush Pourmojib, added that while the manufacturer hopes to compete in markets such as Azerbaijan, Oman and Iraq, “in terms of volume, of course, Russia is the most important.”
Iran Khodro plans to produce 500,000 vehicles this year, and the company’s goal is to export 100,000 annually, compared to less than 20,000 at present.
The Iranian company Khodro already exported cars to Russia between 2007 and 2009, but deliveries were halted due to low demand. Several times the manufacturer has tried to return to our market, but each time without success.
Reference
Iran Khodro is the largest Iranian car company headquartered in Tehran. It produces cars under its own brand and under license from Peugeot. Mercedes-Benz also assembles trucks and buses under license.