Iran’s main automaker is looking for to seize a share of the Russian market after Western producers halted output or exited the market following sanctions.

Iran Khodro CEO Mehdi Khatibi made the announcement on August 14 as he unveiled the corporate’s newest mannequin — the crossover Rira.

“We’re going to pay particular consideration to the Russian market, and we’re additionally considering of partnering with Russian traders,” he stated.

“The Russian market, with its capacities, will likely be one among our essential markets,” Khatibi added.

Iran Khodro will start exporting to Russia this yr, he stated.

Khatibi stated he had been in negotiations “with Moscow,” however he didn’t make clear whether or not the talks simply revolved round exports or additionally included potential native manufacturing.

Iran Khodro had briefly exported vehicles to Russia throughout the 2000s, in line with Iranian media.

Russian President Vladimir Putin traveled to Iran in July to satisfy his Iranian counterpart, Ebrahim Raisi, and Supreme Chief Ayatollah Ali Khamenei.

Moscow is looking for to boost financial ties with Tehran after the West imposed punishing sanctions on Russia following its invasion of Ukraine.

Iran can be beneath wide-ranging Western sanctions.

Russian auto manufacturing has plummeted because the imposition of sanctions, as a result of producers can now not import microprocessors and different elements wanted for last meeting.

A number of Western and Asian corporations have idled their Russian vegetation in the meanwhile whereas some have introduced they’re completely leaving the market.

Exports of Western vehicles to Russia have additionally sunk sharply.

Khatibi didn’t say what number of vehicles he expects to export this yr to Russia.

Whereas the exit of Western fashions opens a door for Iran Khodro, Russia’s financial system is anticipated to contract sharply within the coming years, hurting demand for big-ticket objects like vehicles.

With reporting by AFP