Major Iranian automaker SAIPA will launch car sales in Russia on June 1, the head of the Best Motors company, Aleksandr Stepanov, announced on Monday.
Iran's second largest car producer by volume will deliver a total of 45,000 vehicles to the Russian market over three years under an export contract valued at $450 million. The first batch of 1000 Quik, Saina and Shahin model cars is due to arrive by summer, Stepanov told reporters.
He added that Best Motors plans to sell at least 10,000 cars during the first year and open as many as 120 dealerships in different regions of Russia.
The Russian company is in talks with the Iranian manufacturer on the localization of production in St. Petersburg, Stepanov said.
Earlier in February, the CEO of Iranian automaker SAIPA, Mohammad Ali Temouri said that "SAIPA Group is ready to send its engineering and technical team to Russia to update their production lines and make things possible. We'll provide car production and supply in the Russian market."
The Iranian cars will reportedly range in price from 1 million rubles ($13,000) to 1.7 million rubles ($22,000) "from the cheapest to the most expensive model" Stepanov explained.
Major Middle Eastern carmakers are eyeing the Russian market following the exodus of European, American, and Japanese brands.
"The turnover of the automobile sector in Russia is more than $20 billion and we can get a good share of this market after the departure of their main partners due to sanctions," the head of Iran's Trade Development Organization, Alireza Peyman Pak was quoted by Tejarat Online as saying.
In February, the Iranian Trade Ministry announced that SAIPA, along with another major automaker Khodro, were undergoing certification in Russia for future vehicle deliveries.