Volkswagen AG plans to sell cars in Iran for the first time in 17 years, taking advantage of easing sanctions to expand amid concerns about stalling growth in Europe and China.
Volkswagen AG plans to sell cars in Iran for the first time in 17 years, taking advantage of easing sanctions to expand amid concerns about stalling growth in Europe and China.
Volkswagen has signed a contract with local importer Mammut Khodro to offer Tiguan compact SUVs and the Passat family car, mainly at dealerships in the Tehran area, VW said in a statement. Expanding into emerging economies is part of VW’s strategy to reduce its reliance on its main markets and add new sources of revenue.
“By returning to Iran, the Volkswagen brand is filling another blank spot on the global automobile map,” Anders Sundt Jensen, the company’s project manager for Iran, said in the statement.
Volkswagen is the market leader in Europe and China, and is struggling to rebuild operations in the U.S. after the diesel-cheating scandal. That leaves Iran, with a population of 80 million, as a rare opportunity for growth. Companies from Boeing Co. to Total SA are jostling for early entry to the Islamic Republic a year after international sanctions tied to its nuclear weapons program were lifted.