Volkswagen re-enters Iranian market after 17 years

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German carmaker Volkswagen (VW) said Tuesday it would resume exports to Iran as soon as next month, marking a return to the resurgent market of the Islamic Republic after a 17-year absence.

The aim is to reduce the manufacturer’s dependence on volatile markets such as China and Brazil. VW’s deliveries to China reportedly dropped 3.3 percent between January and May to 1.51 million cars while sales in Brazil fell 1.9 percent to 116,600 vehicles.

The company sealed a deal with local importer Mammut Khodro, which is due to import VW Tiguan and Passat models through eight dealerships mainly in the Tehran area.

VW is seeking to catch up with European rivals Renault and Peugeot Citroen that became the first car makers to re-enter the Iranian car market after Tehran’s 2015 deal with world powers.

Europe’s largest car manufacturing group began selling vehicles in Iran in the 1950s, but suspended…

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