Skoda Sets Mid-2017 Target for Iranian Market

Volkswagen’s sub-brand Skoda is reportedly entering the Iranian auto market by mid-2017, which confirms comments from the German-Iranian Chamber of Commerce that the brand will start production soon.

The carmaker has a long history in Iran dating back to pre-1979 with its original showroom now used to host antique models on Taleqani Street in the center of the capital Tehran.

“The mass-market brand will start deliveries in Iran, South Korea and Singapore in 2017,” Skoda’s chief executive, Bernhard Maier, was quoted as saying by Reuters.

“Skoda will start importing completely built-up cars to Iran sometime next year and has signed preliminary accords with local partners to start semi knocked-down production in the country.”

Maier, who estimates that over 2 million cars will be sold per year in Iran following the country’s nuclear deal with the West to end sanction, said taxation of cars with engine sizes below 1.6 liters, which are common in Skoda’s range of models, are particularly favorable.

It’s not known which models will enter the Iranian market, but the Skoda hatchback Fabia, the seven-seat Kodiaq SUV and large sedan Optima have been slated for release.