Iran Khodro sets up shop in Armenia

Financial Tribune- The inauguration ceremony of Iran Khodro Company’s first showroom in the Armenian capital, Yerevan, was held December 18, IKCO said in a press release.

The Dena, Runna, Soren and Arisun pickup were showcased to the invitees and press corps.

Reza Naghedi, director for IKCO Armenia, said, “IKCO cars in the Armenian market need to compete with low-cost rivals. Appropriate after-sales service, and spare parts can help build a suitable market share for our cars.”

The official noted that the office has employed ten locals for the showroom and four had received  training in Iran.

“There are 3000 Samands and around 2200 IKCO produced Peugeot 206 hatchbacks in the city from our previous sales,” the director said.

Iran Khodro tried to establish a foothold in the Caucuses region in 2008, but pulled out due to the economic sanctions imposed on Iran over its nuclear program., an Armenian auto listing website, recently listed a 2008 Samand in that market with 190,000 km on the clock, for $4,500 ($162 million rials).

IKCO has struggled in the fortress-like Armenian market, where prices of Iranian cars don’t hold the same retention levels as European and Japanese brands.