Volkswagen restarts doing business in Iran

According to Volkswagen official announcement, it will return to Iran’s market after 17 years of absence, by next month. It will initiate with export of two models of vehicles, Tiguan and Passat.

Mammut Khodro, the largest Industrial Contracting Company and manufacturer of Trailers in the Middle East, is the local partner of Volkswagen. Mammut signed an agreement with Volkswagen, the largest car maker in Europe, to import Tiguan and Passat models in Iran’s market from August. The vehicles will be distributed initially by eight dealers located in Tehran.

Europe’s largest car manufacturing group, Volkswagen, launched selling vehicles in Iran in 1950s, however, exports were stopped in 2000 due to the international sanctions introduced against Iran. After more than 17 years and as a result of lifting of sanctions, the Volkswagen returned to the Iranian Market to expand its worldwide presence to this part of the world as well.

Mammut Group established in 1995 and today is the largest Industrial Contracting Company and manufacturer of Trailers in the Middle East.  Mammut is active in the manufacturing of specialized trailers for the transportation industry, pre-engineered steel buildings, pre-cast concrete manufacturing, and infrastructure development. The company operates throughout the GCC, Africa, Middle East and Europe.

According to the International Organization of Motor Vehicle Manufacturers (OICA), the Iranian government estimates annual new registrations in the passenger car market of about 3 million. Last year the total car registrations were 1.3 million vehicles.

Mehrzad Ferdows, Board Member & Owner of Mammut Group, said Iran’s automotive market is changing based on the buyers’ expectations. He pointed that some of the main features that are increasingly important for Iranian customers are comfort, environmental friendliness, safety, fuel consumption. He expressed Mammut group’s pleasure of being as the partner of Volkswagen in Iran.

Iran has the largest automotive market in the Middle East region and many of the world’s car makers intend to enter or re-enter to the Iran’s market. The agreement between Mammut Khodro and Volkswagen, is a great deal for both companies and a major step for Iran’s international business relations after lifting of sanctions.

Shanda Consult covers various aspects of Business and Tax Consulting, emphasising on assisting investors to find the right Joint-Ventures partners, to decide on the best suitable corporate structure, tax consulting, country-specific coaching, corporate services, business location consulting, and others.

Shanda Consult is experienced in localising German and other EU companies as prospective Joint Venture partners or strategical investors for client projects in the Middle East, Ukraine and India.