Russian car manufacturers open negotiations with Iran but face stiff competition

Russian car manufacturers AvtoVAZ, GAZ and Kamaz are in talks with Iran about the possibility of opening car plants there now that it looks like sanctions are to  be lifted, according to Russia’s Ministry of Economic Development. It is warning, however, that they are not the only ones. “[If sanctions are lifted] Russian companies will face serious competition from European and American automakers, who have already had experience of assembling production of some of its models in  Iran.”
Dominated by companies such as  Bahman Group, Iran Khodro and Saipa and with an annual production of 1.6 million vehicles, Iran is the Middle East’s biggest car producer and  ranks 13th in the world for total production and 5th in the world in terms of fastest growth. The automotive sector currently accounts for 10% of the country’s GDP.

Source: BFM