Audi assesses a potential entry on the Iranian market

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Audi said it was considering entering for the first time into the Iranian auto market, as it sees great potential for premium cars. Mercedes-Benz passenger cars is also evaluating this opportunity.

A new market has been opened for the automakers, as the economic sanctions against Iran were lifted. A resumption of exports at the pre-sanctions levels of ten years ago may bring some important additional profits for the German companies, up to 4.5 billion euros (4.9 billion dollars), according to estimates made by analysts at Deutsche Bank AG in July 2015. Germany’s DIHK Chamber of Commerce and Industry sees further potential, saying the German companies may be able to export goods worth 10 billion euros (10.9 billion dollars). Given the new revenue opportunities, it is no wonder major carmakers are assessing an entry into the Iranian auto market. After Daimler’s announcement on signing letters of intent with joint venture partners for its trucks division, Audi also said that it saw potential for a first time entry.

Officials of the Volkswagen-owned brand are currently in Iran for talks with possible importers to examine the prospects for business, a spokeswoman at Ingolstadt-based Audi said on Monday. “There is growing potential for luxury cars,” she said, pointing out Audi has never before done business in Iran. A spokeswoman for Mercedes-Benz passenger cars also said the luxury auto maker was preparing to re-enter Iran’s market, but she said it was too early to give additional details about how this would happen. The BMW rival is not excluding the opportunity to explore the newly reopened market, saying the biggest premium automaker entry in Iran “will depend on political and economic developments.”

Via Reuters