Iran, Russia Increasing Cooperation In Automotive Industry

Around 50 Iranian companies from the automotive sector have showcased their parts and equipment in Russia’s main car show while the country itself is struggling to make good quality vehicles.

Iran’s Industries Minister Reza Fatemi-Amin traveled to Moscow at the head of a large delegation to attend the opening ceremony of the MIMS Automobility Moscow 2022, from August 22 to 25. 

He told IRNA that the show marks a turning point in automotive industry cooperation between Iran and Russia as the two countries seek to offset the impacts of foreign sanctions on their economies.

Seeking to expand their markets in Russia, Iran’s largest carmaker the Iran Khodro Company, branded as IKCO, and its rival Saipa plan to cooperate with Russian automakers in car productions, such as a project between Saipa and Russia’s AvtoVaz -- maker of the Lada -- to manufacture a Renault model that was discontinued in Iran in 2018 after the French company left Iran because of US sanctions. 

Sixteen European car manufacturers (including four of the top 10 by market share) sold close to half a million units of Russia’s total sales of 1.67 million in 2021, making the country the eight-largest car market in the world in terms of global sales volumes. But following the sanctions over the Russian invasion of Ukraine, almost all foreign firms left and car sales were down by 84 percent in May. 

Criticizing Iranian automakers for producing low-quality vehicles responsible for a high rate of road accident casualties, Iran’s traffic police said Tuesday that substandard and unsafe cars lead to at least 17,000 deaths and 300,000 injuries every year.