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Iran top automaker sets sights on Russian market

  • By Al Mayadeen English
  • Source: Agencies
  • 14 Aug 2022 20:55
2 Min Read

Iran's major automaker, Iran Khodro, aims to prioritize exports to Russia as both countries face Western economic sanctions.

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  • In this picture taken on Saturday, Jan. 18, 2014, an Iranian worker assembles a car at the Iran Khodro automobile manufacturing plant, just outside Tehran, Iran (AP Photo/Vahid Salemi)
    In this picture taken on Saturday, Jan. 18, 2014, an Iranian worker assembles a car at the Iran Khodro automobile manufacturing plant, just outside Tehran, Iran (AP Photo/Vahid Salemi)

Iran's largest automaker is attempting to prioritize exports to Russia, according to its CEO, as both countries face Western economic sanctions.

Iran Khodro displayed the latest model of its Rira crossover car at its factory west of Tehran, where CEO Mehdi Khatibi outlined the company's plans for the Russian market.

"We are going to pay special attention to the Russian market, and we are also thinking of partnering with Russian investors," he said.      

"We have held good negotiations with Moscow. The Russian market, with its capacities, will be one of our important markets," Khatibi added.  "We will begin exporting this year" to Russia, he said.    

Iran Khodro formerly delivered vehicles to Russia, most notably between 2007 and 2009, according to Iranian media.

Read next: Putin's aide: Russia, Iran to become strategic partners

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The declaration on Sunday comes after Russian President Vladimir Putin visited Tehran in July, where he met with Iranian counterpart Ebrahim Raisi and Iranian leader Ayatollah Ali Khamenei.  

Since the start of the Ukraine war, Russia has endured increasingly harsh sanctions, while Iran has faced stiff sanctions reimposed in 2018 when the US unilaterally withdrew from a nuclear deal between Tehran and international powers.    

In response to the sanctions, the two countries have increased collaboration in crucial areas to assist support their respective economies.  

Kianoush Pourmojib, vice president of Iran Khodro, expressed optimism on Sunday, citing increased exports to Azerbaijan over the last five years. "We are ambitious about improving the quality of our vehicles," he told AFP.      

He added that while the manufacturer hopes to compete in markets such as Azerbaijan, Oman, and Iraq, "in volume, it is, of course, Russia that is the most important".      

"This year, we will produce more than 500,000 vehicles and our goal within three years is to export 100,000 vehicles annually," compared with fewer than 20,000 currently, he said. 

Read next: Russian envoy: JCPOA restoration expected to be reached next week

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