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Iran Considering Joint Car Production with Russia: Ambassador

The Iranian Ambassador to Russia, Kazem Jalali said Tehran is considering the possibility of joint automobile production with Moscow.

He told Russian reporters on Wednesday that the two parties were discussing the issue and that he hoped the plans would be achieved.

Jalali added that Iran’s two major manufacturers, Iran Khodro and SAIPA, both of which participated in an auto parts exhibition in Moscow this summer, had also held conversations with Russian partners.

Mohammadreza Najafi-Manesh, the head of the Iranian association of auto parts makers, stated in late November that Moscow and Tehran had inked a $300 million memorandum of understanding for Iranian car exports to Russia. He indicated that Iran Khodro, the Middle East’s largest carmaker, is eyeing the Russian market following the exodus of European, American, and Japanese manufacturers.

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.

Despite being under Western sanctions for decades, Iran has managed to develop its own automotive industry that caters to domestic demand. The country was also 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.

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