Automobile industry leaders from Iran, Russia, and Turkey are discussing collaborative car design and production after sanctions on Moscow and Tehran slowed output, according to IRNA.

"There is a great possibility of tripartite cooperation between car manufacturers and suppliers of the three countries," said Mohammadreza Najafi-Manesh, the head of Iran's Auto Parts Manufacturers Association, the official news agency said.

"These three countries can capture a large market for their products," Najafi-Manesh said, arguing that they could target a population of "at least 800 million if neighboring regions are included".

Russia, which was sanctioned by Western nations after launching a military operation in Ukraine, was said to have contacted Iran in May for vital components that it could no longer obtain.

Read next: Iran, Russia sign business deal

As sanctions bite, the proposed cooperation on automobile constriction between the three nations could progress rapidly, Najafi-Manesh said. "This idea can be realized very soon," he said.

"Manufacturing all the parts of this car... avoiding currency transfers to provide spare parts, and the existence of export markets are among the advantages of such a project." He added that the idea was first floated by Turkey and that Russia was "interested".

Iran has also been subjected to harsh economic sanctions, which the US reimposed in 2018 after unilaterally withdrawing from an agreement with international powers over Iran's nuclear program.

Over the last two decades, as Russia's economy has grown, Western automakers have expanded into the nation to produce vehicles.

Read next: EU bans transit of Russian, Belarusian vehicles - Russian Customs

However, since the Western sanctions campaign on Russia, major car manufacturers, including Audi, Honda, Jaguar, and Porsche, have suspended sales of their vehicles or parts to Russia. BMW, Ford, Hyundai, Mercedes, Volkswagen, and Volvo have all ceased Russian production.

Iran and Turkey have a land border, whereas Russia shares a sea border with both Iran and Turkey, spanning the Black Sea and the Caspian Sea.

According to the International Organization of Vehicle Manufacturers, Turkey already exports more than $12 billion in automobile spare parts per year, and Iran will be the world's 19th largest manufacturer in 2021. Based on OICA data, Iranian automakers produced 894,298 vehicles in 2021, IRNA reported.