Russian and Iranian Auto Manufacturers Look To Cooperate

Iranian and Russian automobile and parts manufacturers met at the MIMS Automobility Moscow 2024 last week to discuss ways to strengthen cooperation, as bilateral trade and supply of Iranian auto parts has increased by 450% since the county signed a Free Trade Agreement with the Eurasian Economic Union and joined BRICS.

The Iranian delegation, led by Deputy Minister of Industry, Mining, and Trade Farshad Moghimi, and Russian automotive industry representatives exchanged ideas on how to promote trade, including how Iranian parts manufacturers can meet the needs of the Russian market. Both sides expressed interest in utilising their capabilities to export cars produced in Iran and Russia to other markets.

Iranian auto parts manufacturers have participated in MIMS Automobility Moscow 2024 for the third consecutive year, showcasing their new products.

Iranian auto parts exports to Russia show significant growth from US$13 million in 2022 to more than US$66 million in 2023. Between March and June 2024, exports have doubled compared to the same period last year.

Ebrahim Doustzadeh, a member of the board of directors of the Iranian Specialised Manufacturers of Auto Parts Association (ISMAPA), believes that Iran has great potential for industry development and that the country can become industrialised.

In 2023, Russia’s new car market ranked 16th globally with 106 million vehicles sold. Sales value in the passenger vehicle market is projected to reach US$34.9 billion in 2024.

The Iranian auto market is estimated to be worth US$37.94 billion in 2024 sales, and is expected to reach US$59.93 billion by 2029.