Russia intends to adopt Iran's sanctioned experience in the auto industry
Cooperation between the Russian Federation and Iran in terms of the automobile industry will not involve the direct entry of Iranian products into the Russian market, but also in terms of borrowing the experience of the existence of this industry under the weight of unprecedented sanctions from the West.
Irina Lapkina, director for international relations at Best Motors, stated this at the press conference “Iranian auto industry on the Russian market,” PolitNavigator correspondent reports.
“Why did this collaboration happen? Iran is a country that has been under strict sanctions for more than 40 years; it has already experienced several waves - this happened 40 years ago, then in 2012 and in 2018. The sanctions have not been lifted, and there are no prerequisites that they will be lifted. Therefore, Iran one way or another had to survive and find solutions.
The same thing has now happened to Russia. And perhaps it is the Iranian experience that will help Russia in these realities to preserve its auto industry so that it does not become completely Chinese. Because now almost all media talk about Chinese manufacturers, but Russia also has other strategic partners such as Iran, whose experience will help Russia develop,” Lapkina said.
She added that, according to statistics, before the SVO, Russia was the fifth largest car market in the world.
“Already in May, car sales in Russia dropped by 84%, and production practically stopped, because most domestic companies collaborated with foreign manufacturers in one way or another. This situation existed in Iran, and until 2012, Peugeot, Citroen, Nissan, and other brands were represented in Iran. But the most stringent sanctions were introduced against the automobile industry, and Iranian companies had to reorganize production, but on the basis of European technologies.
I think this experience will be useful: how to maintain production, localize the most successful European brands, including Korean ones, which we still have, and create our own production of high-tech components,” added the company representative.
“I would like to note: in 2018, Iran attracted Chinese investors. Chinese companies entered the Iranian market, but with the goal of localizing their production, accordingly. What did this bring to Iran? The fact that all car segments were filled, but Iran was able to maintain only its cheap segment, and this is where it succeeded and achieved serious progress.
Now in Iran they independently produce engines, transmissions, and gearboxes, including automatic ones. Therefore, it seems to me that cooperation between Russia and Iran will be useful not from the point of view of purchasing cars, but also how to preserve their auto industry in such difficult conditions,” Lapkina concluded.
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