Volkswagen Returns to the Iranian Car Market After 17 Years

The German car manufacturer Volkswagen will resume sales of its products in the Iranian market after 17 years starting from August. The company announced on its website on Tuesday, July 2, that it has signed a contract with the Iranian company "Mammut Khodro." According to the report, in the first phase, the "Tiguan" and "Passat" models will be exported to Iran. The private company "Mammut Khodro," which is also the official importer of Scania, will carry out the import of Volkswagen vehicles initially through its eight sales representatives in Tehran. According to Anders Sundt Jensen, Volkswagen's project manager in Iran, with its return to Iran, Volkswagen will fill another gap in the global car market. The company is currently strengthening its presence in international markets. He states, "We are bringing our latest models with the best specifications to the Iranian market." Mehrzad Fardous, the owner and board member of Mammut Khodro, also mentioned, "The Iranian car market is currently changing based on customer expectations. Comfort, compliance with environmental standards, safety, fuel consumption, and up-to-date services are of great importance among Iranian customers." He added, "This has led to a revision in the automotive industry and consequently a shift towards the use of more modern vehicles. Mammut Khodro is very pleased to take part in this change process through its partnership with Volkswagen." The import of the Tiguan and Passat models continues the historical presence of Volkswagen cars in Iran. In the 1950s, the "Beetle" model was prominent on Iranian roads, and the "Bully" models were added in the 1960s, followed by the "Gol" in the 1990s. Volkswagen completely exited the Iranian car market in 2000. The initial goal of this German automaker's import plan in Iran is to analyze current market needs, establish the Volkswagen brand presence, and provide modern German manufacturing technologies to Iranian customers. The report adds that according to Iranian government statistics, the annual demand for car purchases is about three million units. Mammut was established in 1995 and is now one of the largest private industrial companies in Iran, operating in various sectors including automotive, construction, IT, support, telecommunications, and financial services, focusing on the Middle East region. Significant increase in car production in Iran According to the Iranian Production and Trade Information Network (Shata), 306,545 various vehicles were produced in the country during the first quarter of the year, showing a 15.2% increase compared to the same period last year. Meanwhile, over the past 16 years, only in 2011 did car production reach the threshold of one million and 600 thousand units, which was actually the peak year of the Iranian automotive industry, after which there was a decline in production.