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Volkswagen reaches agreement with local partner to sell in Iran

July 5, 2017 0 Comments

After 17 years without a presence in Iran, Volkswagen Group has made plans to sell the Passat and the Tiguan in Iran.

According to Automotive News, the automaker’s move to Iran is “expected to help [VW] reduce its reliance on volatile overseas markets” like Brazil and China.

On Tuesday, Volkswagen spoke about an agreement reached with Iran’s Mammut Khodro to import the Passat and Tiguan into the country. The vehicles will first be distributed via eight dealerships, focused on the greater Tehran area.

“By returning to Iran, the Volkswagen brand is filling in another blank spot on the global automotive map,” said Anders Sundt Jensen, project manager for the Iranian market at Volkswagen, in a statement. “We are thus strengthening our international presence still further. At the same time, we are taking our very latest models with premium features to our Iranian customers.”

The Iranian government predicts 3 million new vehicle registrations in the passenger car market annually “in the midterm to long run.” According to the International Organization of Motor Vehicle Manufacturers (OICA), Iran had 1.3 million vehicle registrations in 2016.

Established in 1995, the Mammut Group is “one of Iran’s biggest private industrial companies and employers,” with their business fields including automotive, IT, logistics, construction, telecommunications, and financial services, focused mainly in the Middle East region.

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