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Russian automakers negotiating vehicles assembly in Iran

Russian automakers said earlier they intend to compensate losses from declining domestic sales focusing on traditional markets in CIS and emerging markets in Asia, Africa, and Latin America

© ITAR-TASS/Sergey Bobylev

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Russia sees new economic prospects for ties with Iran after sanctions lifted

MOSCOW, April 3. /TASS/. Russian automakers AvtoVAZ, GAZ and KAMAZ are holding negotiations on setup of Russian vehicles’ assembly in Iran, the press service of the Ministry of Economic Development said on Friday.

"Several Russian automobile companies are currently holding negotiations with the Iranian side concerning the setup of Russian vehicles’ assembly in Iran [AvtoVAZ, GAZ, and KAMAZ at the initial stage — TASS]. However, no specific agreements have yet been reached," the press service added.

"Russian companies will be challenged by major competitors represented by European and US automakers already having the track record of assembling their models in the territory of Iran if sanctions are lifted," the Ministry of Economic Development said.

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Russia's industry and trade minister forecasts 10% decline in car production in 2015

The setup of Russian vehicles’ assembly facilities was discussed during the visit of the Russian Minister of Economic Development to Teheran in November 2014.

Russian automakers said earlier they intend to compensate losses from declining domestic sales on the account of export, focusing on traditional markets in CIS and emerging markets in Asia, Africa, and Latin America.

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Economy Iran Automotive industry

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