Automotive

"The nuclear deal struck by Iran and six world powers will put more rubber on the road in the Islamic Republic. The country’s major carmakers stand ready to start receiving parts again from French firms PSA Peugeot Citroen and Renault when the sanctions ease. That could see Iran’s stalled car production again take off, proving a boon to local automakers and potentially draw in more foreign investment from other manufacturers hoping to break into the market…American carmakers have been absent from Iran since its 1979 Islamic revolution and the U.S. Embassy takeover. U.S. law blocks American carmakers from the Iranian market. That’s not to say there’s no interest in American muscle cars. An Iranian advertising campaign in recent months promised an exhibition of American-made cars but it was never held. Iranian media did, however, report the arrival of some Chevrolet Camaros to the country earlier this year, apparently through third parties." (AP, "Iran nuclear deal hits gas pedal for carmakers," 11/30/13)

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"First American cars which have been imported by El Khodro Aras Company arrived in Tehran's Imam Khomaini International Airport, Mehr news agency reported. Imported cars (Convertible 2LT RS Package 2013 Camaro which is manufactured by General Motors) were transported from State of Miami to Paris and then to Tehran by Qatar Airways, the report said. Iran's Aras Free Trade - Industrial Zone (AFZ) is shown as the final destination of cargos in the documents submitted to the U.S. Customs and Border Protection (CBP), because CBP does not allow new car exports in order to protect regional products (South Korea's GM)." (Azer News, "Iran Imports American Cars," 7/22/2013)

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“Lobby groups in the US, such as United Against Nuclear Iran (UANI), have previously targeted PSA as well as its partner, General Motors, by highlighting what it referred to as the 'taxpayer-funded US $50 bn bailout of GM’… ‘Once again, we see evidence GM's partner, Peugeot, continues to do business in Iran,’ said UANI CEO, Mark Wallace, in April this year, although PSA insists it has stopped shipping parts.” (Just-Auto, “Sources Claim Continued IKCO Puegeot Production Despite PSA Parts Stop,” 6/20/13)

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"A French car manufacturer that is partially owned by the taxpayer-funded General Motors Company (GM) claims to have ceased its longtime business dealings with Iran, though experts have cast doubts on this claim. GM owns a seven percent stake in PSA Peugeot Citroën, which has faced intense scrutiny for its business relationship with Iran... Although Peugeot and GM maintain the manufacturer 'suspended' shipments to Iran in March, sanctions experts argue that the relationship has continued to flourish behind the scenes... Peugeot’s alliance with Iran is of particular concern to UANI and other observers due to GM’s stake in the corporation. 'In this holiday season, as charities compete for Americans’ generosity, Americans should know that thanks to GM’s partnership with Peugeot, a company funded with their tax money has effectively made its own charitable contribution to enrich a genocidal regime,' said Michael Rubin, a former Pentagon adviser on Iran and Iraq. As one of Tehran’s top trading partners, the GM-backed Peugeot is responsible for injecting billions into the Iranian economy, thereby frustrating Western efforts to sanction Iran for its nuclear enrichment program. 'The hundreds of millions of dollars that Citroen generates for the Iranian economy through taxes, fees etc., flows through the IRGC, the entity that runs the financial arm of Iran’s nuclear and terror programs,' said Mark Langerman, a financial adviser who is managing director at the Patriot Fund, an investment firm that shuns companies tied to Iran. 'We bailed GM out to the tune $50 billion and the U.S. Treasury Department owns over 25 percent of GM stock, which means by extension that we—you and me—own stock in a company that is partnered with one on the biggest contributors to Iran’s economy,' Langerman said. A GM spokesperson did not respond to a Washington Free Beacon request for comment... GM originally struck a deal to purchase seven percent of Peugeot in February, when the company was still dealing with Iran despite U.S. economic sanctions banning this type of activity. GM spent $400 million for its stake in Peugeot, according to reports." (The Washington Free Beacon, "Making Mullah Mobiles," 12/17/2012)

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"ONA is a leading manufacturer of electrical discharge machining equipment, a kind of industrial tool used to make production parts for the electronic, aerospace and auto industries. The company lists the National Aeronautics and Space Administration, Air France and General Motors among its customers." (The Wall Street Journal, "Spain Raids Company Over Suspected Iran Export," 11/26/2012) 

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"PSA Peugeot Citroen SA and hundreds of smaller firms are feeling the sting of sanctions against Tehran as the French government withholds 220 million euros set aside by an Iranian bank for future payments for exports, due to a fear of harming Peugeot's alliance with U.S. auto-maker General Motors Co. . . . The French Treasury has refused to release any of the money previously set aside in a Bank Tejarat account in Paris to guarantee payments for exports. The deliveries had been committed before the European Union introduced sanctions on the Iranian commercial bank on Jan. 23, people familiar with the matter said this week. Although the EU had allowed a two-month period for completing ongoing transactions with Bank Tejarat, the companies are still waiting for the French Treasury to permit the funds' release. 

This is because the French government first wants to ensure that allowing the release of some of that money to Peugeot, for spare parts orders from Iran Khodro Co., won't jeopardize the French auto maker's alliance with General Motors, one person said. Iran Khodro Co. assembles automobiles from kits provided by the French company. 

General Motors became the second-largest shareholder in Peugeot in March, buying 7% for EUR240 million. The GM alliance with Peugeot--Europe's second-largest car maker after Germany's Volkswagen AG --also covers the joint development of new parts and platforms on which their brands will base new models. That is seen as a key advantage in attempts to revive the fortunes of the French car maker, which is struggling amid a downturn in the European automotive industry' . . .

Any release of letters of credit to Peugeot could complicate matters for the General Motors tie-up, because Tejarat is under sanctions in both Europe and the U.S., a person familiar with the matter said. This leaves the future of the French auto maker's business with Iran in limbo. Both Peugeot and General Motors declined to comment on the Tejarat funds. A spokesman for General Motors did say that Peugeot had made the decision to suspend the shipments of spare parts to Iran prior to entering the alliance. 'GM's agreement with Peugeot is fully compliant with US law governing trade with Iran, and is not intended to benefit Iran in any way,' the spokesman for the U.S. automaker said.

Peugeot's Iran business is particularly sensitive because the U.S. Treasury holds a stake in GM. GM said in February that the Treasury held a 31.9% stake. That could make the very institution that enforces sanctions in Washington an indirect beneficiary of Iranian business if Peugeot received payment from the Middle-Eastern nation. Yet while confirming Peugeot had suspended deliveries to Tehran for the time being, a Peugeot spokeswoman said the company has not permanently pulled out of Iran." (Dow Jones, "France Withholds Funds From Peugeot Over Iran Sanctions Fears -Sources," 8/21/12)

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"Deeply conflicting views as to whether or not PSA Peugeot Citroen has halted shipments of vital components to Iranian partner, IKCO, are being set against a widening clamour in the US for General Motors to put pressure on its new French partner to end the relationship with Tehran. Iran Khodro insisted to just-auto this afternoon (19 June) shipments of parts were continuing into ports in the country, with the French automaker previously saying it had suspended delivery of components for the 206 and 405 models until July to comply with European Union and US sanctions. Into the fray has also stepped powerful American lobby, United Against Nuclear Iran (UANI), which has been applying intense pressure on GM and Peugeot with the US manufacturer now holding 7% of its French partner. Writing two weeks ago in the US, UANI CEO, Mark Wallace, a former US ambassador to the United Nations noted: 'We again call on GM and Peugeot to take the responsible action of evaluating Peugeot's business in Iran and putting a complete and final end to it.' However, in calls made by just-auto to Tehran today, IKCO insisted ships were docking in Iran, as shown by the production lines continuing to run.'The evidence shows shipments is continued," reliable sources in IKCO told just-auto. 'There is not any problem in shipments of Peugeot product parts - shipments of Peugeot are continuing here.' However, PSA remains adamant it has stopped supplying ICKO in accordance with the strict sanctions regime, adopting a robust position concerning Paris' position with Tehran, although it left open the possibility business could restart in September . . . UANI has also raised the financial temperature by highlighting what Wallace refers to as the "taxpayer-funded US$50bn bailout of GM" in order to attempt to put further pressure on its French partner and noting it was "completely unacceptable" for Detroit to be aligned financially with Peugeot's activities in Iran." (Just-Auto, "IRAN: IKCO and Peugeot at loggerheads on Tehran shipments," 6/19/12)

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"ISACO Chief Executive Officer Behzad Zahiri...said that IKCO has not yet received any official announcement from Peugeot indicating a halt in their mutual cooperation...Currently 10 to 15 percent of spare parts required for IKCO cars are supplied by Peugeot. In case Peugeot stops spare part supply, the required parts could be easily replaced by domestic suppliers or suppliers from other countries. Last year, 37 percent of the needed...The French auto-manufacturing group PSA Peugeot Citroen has suspended operations at one of its factories in northeastern France because of a halt to shipments of spare parts from Iran. PSA Peugeot Citroen reportedly stopped its trade with Iran on February 20 after the enforcement of US-led sanctions against the Islamic Republic for its nuclear energy program. Iran was PSA Peugeot Citroen’s second-biggest market in 2011 in terms of trade volume" (PressTV, "ISACO ready to supply spare parts if Peugeot imposes sanctions," 4/19/12)

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"The Fars branch CEO Mohammad Javad Habibi said the company produces one car per hour and it is expected to exceed five units this year. The unit has produced 250 Peugeot Pars sedans since the beginning of the mass production. Roughly 100 employees are working in the company, while the increase of production would create 150 job opportunities in every working position.  The company is IKCO's fifth local production site, the total investment for which rose to almost 60,000,000 dollars.  Production capacity of IKCO in Fars exceeds 30 thousand cars in a year. All types of Peugeot 405 sedans are currently mass produced in the company."  (Payvand, "Iran Khodro's Fars branch to produce 15,000 Peugeot Pars," 4/15/12)

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"In March, General Motors said its French partner, PSA Peugeot Citroën, suspended shipments of vehicle components to an Iranian carmaker, in compliance with US laws governing trade with Iran." (Financial Times, "Iranian Car Industry Weathers Stormy Year," 5/8/2012)
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"An influential US anti-Iran lobby group on Wednesday called for newly tied General Motors and Peugeot to shut down Peugeot's Iran business due to Tehran's suspect nuclear program.  The United Against Nuclear Iran group said GM's new investment in PSA Peugeot Citroen should be investigated to see if it violates US sanctions on Iran, because of Peugeot's strong market position in the country. "As a working partner and now official stake-owner of Peugeot, GM owes it to its investors and customers to compel Peugeot into ending its business in Iran," said UANI head Mark Wallace, a former US ambassador to the United Nations.  "By doing business directly with the Iranian regime, Peugeot supports the regime's ability to develop its illegal nuclear weapons program, support terrorist proxies and repress the Iranian people." (AFP, "Anti-Iran lobby hits GM-Peugeot deal," 3/29/12)

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"General Motors Co. said Wednesday that its French partner, PSA Peugeot Citroen SA, has suspended shipments of vehicle components to an Iranian car maker, and that its alliance with Peugeot "is fully compliant with U.S. law governing trade with Iran." GM has faced criticism from United Against Nuclear Iran, a group founded by a former U.S. ambassador to the U.N., and others opposed to the Iranian regime for agreeing to buy a 7% stake in the French car maker, because Peugeot has in the past supplied parts to Iranian car maker Iran Khodro.  GM, in a statement, said "we have discussed this issue with Peugeot. We understand that they made the decision to suspend the production and shipment of material into Iran some time ago--before we entered into our alliance with them in fact--and have decided to continue with that suspension. Our agreement with them is fully compliant with US law governing trade with Iran, and is not intended to benefit Iran in any way." (Wall Street Journal, "GM Says Peugeot has 'Suspended' Shipments to Iranian Car Maker, " 3/28/12)

Lists a local contact in Iran.

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Oct 2017 - The French automotive group has also forged a joint production agreement with SAIPA through its Citroen brand. Unveiled in July 2016, the deal obliges the Paris-based carmaker to invest €300 million over the next five years for the development and production of three Citroen models in the country.

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"PSA on Wednes­day reported a rise in car unit sales for 2016 thanks to business in Iran which the carmaker is including again after the end to sanctions against Tehran. With the integration of sales from joint ventures and licence agreements in Iran, Peugeot booked a rise in deliveries of 5.6pc. On a comparable basis, without the integration of the Ira­nian contribution, the figure dropped by 2pc from 2015. The group’ s three brands Peugeot, Citroen and DS, sold just over three million cars last year, of which 233,000 were produced under licence in Iran. In 2015, the group sold 2.9 million units. PSA’ s post-sanctions return to Iran resulted in joint ventures with local companies Iran Khodro and Saipa, and a partnership with Arian Motor." (AFP, "Iran car sales keep PSA on growth track," 1/11/2017).

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"French carmaker PSA Peugeot Citroen has reached a deal with Iran’s biggest carmaker to open a plant producing 200,000 vehicles a year, renewing an old partnership with Iran Khodro Co following the lifting of international sanctions. The two companies showcased five models on Wednesday to be produced by IKAP, a joint venture first announced in January during a visit to France by Iranian President Hassan Rouhani." (AP, "PSA Group reaches Deal to Make 200,000 Cars a Year in Iran," 10/5/2016).

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"PSA Peugeot Citroen said it plans to sell more than 150,000 Peugeot vehicles in Iran in the second half of this year as the French carmaker seeks to reclaim the leading position it once enjoyed in the country. Peugeot, the biggest-selling European automaker in pre-sanctions Iran, suspended sales in 2012 when an international boycott due to Iran's nuclear program was extended to cars. Most sanctions were lifted in January... Iran's Minister for Industry Mohammad Reza Nematzadeh will visit PSA's Velizy research center near Paris on Thursday to discuss cooperation with the carmaker, CEO Carlos Tavares told reporters at the Paris autoshow. "This is the kick-off for the implementation of the deals we have signed," said Tavares, who will travel to Iran next week. Tavares wants to sell 300,000 Peugeot vehicles in Iran in 2017." (Reuters, "Peugeot targets $150,000 vehicle sales in Iran in second half," 9/29/2016).

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The Wall Street Journal reported that Peugeot “signed a deal with an Iranian company to make Citroëns in Iran … [and] plans to invest more than €300 million ($330.1 million) in industrial capacity and research and development at the site over the next five years.” (The Wall Street Journal, “Peugeot Signs Joint Venture to Make Citroëns in Iran,” 7/21/2016).

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"Citroen cars will roll off an assembly line in Iran starting from 2018, under a deal between French automaker PSA and Iran's SAIPA finalised on Thursday, PSA said. The joint venture, in which PSA and SAIPA will each have a 50 percent stake, will see cars produced at a plant in Kashan, some 200 kilometres (120 miles) south of the capital Tehran... The Kashan plant is used to produce Citroen cars but has not made one since the start of the decade. The two firms plan to invest "more than 300 million euros ($335 million) in manufacturing and R&D capacity over the next five years," PSA said in a statement. The move follows PSA's 400-million-euro deal in June with Khodro to build 200,000 Peugeot vehicles a year in Iran by 2018." (AFP, "Citroen maker seals Iran joint-venture deal," 10/6/2016).

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“Iranian car manufacturing company Saipa is in talks with France's PSA Peugeot Citroen and Renault, Germany's Mercedes-Benz, and Sweden's Volvo to finalize deals on joint production of cars in Iran, Saipa officials announced on Tuesday.  Saipa CEO Saeid Madani announced that the company is in negotiations with PSA Peugeot Citroen to sign a deal, but at the same time noted that any deal would depend on the ongoing talks between Tehran and world powers over the country's peaceful nuclear energy program. He made the remarks on the sidelines of a ceremony held here in Tehran to unveil the production line of a new Volvo truck in Saipa Diesel factory.” (Tasnim, Iran's Saipa Negotiating with European Automakers, 5/12/15)

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"Citroen C5...has already received the necessary permit from the Institute of Standards and Industrail Research of Iran (ISIRI) as well as the Department of the Environment to enter the Iranian market." (Zawya. "Iran: Citroen C5 Import From Sept." 6/19/2006)

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"Citroen and SAIPA, the Iranian carmaker have signed a contract for the production of Citroen Xantia in the SAIPA factories in Iran for the Iranian car market, making SAIPA part of Citroen's strategy for international development in central Asia." (AutoWeb. "Citroen to Produce the Xantia in Iran." 3/23/2000)

In November 2017, Iran discussed bilateral cooperation in the field of air industries with Antonov company CEO. Iran and Antonov company have been cooperating in the production and operation of aircrafts for two decades.

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"The Persian Gulf country will buy two Ukrainian-made Antonov-158s, after a test flight of the aircraft earlier this month, Mohammad-Ali Sirati, managing director of the Iranian aircraft company, was cited as saying by the official Islamic Republic News Agency. The countries then will start to jointly build the aircraft next year, Sirati, whose company will be in charge of the project, said in Tehran yesterday. Some 30 percent of each plane will be made in Iran, state-run media reported." (Business Week, "Iran Says Antonov-158 Built With Ukraine May Fly in 2013," 10/6/2011)

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Antonov lists on its website that their AN-24 turboprop aircraft is serially produced at HESA plant in Isfahan, Iran. (Antonov website)

According to its company website, Toyota Motor has an oversea distributor in Iran that is named Irtoya Co. 

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On January 20, 2020, Minnesota SBI listed Toyota Motor as a scrutinized investment. The managers are explicitly instructed to refrain from purchasing securities on this list

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According to its Annual Report filed with the SEC for fiscal year 2018: Toyota Kirloskar Motor Private Limited, a majority-owned subsidiary of Toyota, sold one Toyota vehicle to the Iranian embassy in India. 

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"The world's largest carmaker selling a single vehicle to a country of 82 million people is not usually a recipe for controversy. But that's what Toyota is facing after it issued an apology and revealed on October 24 that the Japanese car manufacturer's Indian subsidiary, Toyota Kirloskar Motor Private, sold one vehicle to the Iranian Embassy in New Delhi in early 2017. (October 25, 2017)

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According to its Annual Report filed with the SEC for fiscal year 2015: "During the fiscal year ended March 31, 2015:      

• Toyota Tourist International, Inc., a majority-owned subsidiary of Toyota, obtained three visas from the Iranian embassy in Japan in connection with certain travel arrangements.
• Tokyo Toyota Motor Co., Ltd., a wholly-owned indirect subsidiary of Toyota, performed maintenance services for Toyota vehicles owned by the Iranian embassy in Japan.

Altogether, the above activities contributed an insignificant amount in gross revenues and net profit to Toyota. Toyota believes that none of the above transactions subject it or its affiliates to U.S. sanctions. Toyota Tourist International intends to cease conducting the activities described above. Tokyo Toyota Motor may, if requested by the Iranian embassy in Japan, continue to perform maintenance services relating to vehicles owned by such embassy, in accordance with applicable laws and regulations, in order to honor Toyota’s commitment to the safety and reliability of its vehicles."

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According to its Annual Report filed with the SEC for fiscal year 2014: "During the fiscal year ended March 31, 2014:

• Toyota Tourist International, Inc., a majority-owned subsidiary of Toyota, obtained eight visas from the Iranian embassy in Japan in connection with certain travel arrangements.
• Tokyo Toyota Motor Co., Ltd., a wholly-owned indirect subsidiary of Toyota, performed maintenance services for Toyota vehicles owned by the Iranian embassy in Japan.

Altogether, the above activities contributed an insignificant amount in gross revenues and net profit to Toyota. Toyota believes that none of the above transactions subject it or its affiliates to U.S. sanctions. Toyota Tourist International intends to cease conducting the activities described above. Tokyo Toyota Motor may, if requested by the Iranian embassy in Japan, continue to perform maintenance services relating to vehicles owned by such embassy, in accordance with applicable laws and regulations, in order to honor Toyota’s commitment to the safety and reliability of its vehicles."

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"[T]he auto sanctions were lifted earlier this year after an interim nuclear agreement was reached between Iran and world powers and a final accord is still on the horizon, raising the prospect of better times for the industry. That will draw international suitors to Tehran on Monday for the second consecutive Iran Auto Show. Mercedes Benz, Volkswagen, Renault, Peugeot, Kia and Toyota have confirmed [they will attend]." (Agence France-Presse, "Foreign automakers find Iranian market has gone local," 11/30/14)

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"Iran totally imported 51,967 cars in the first half of the current Iranian calendar year (March 21 - September 22). Hyundai with 24,991 cars was the main exporter of cars to Iran in the mentioned period, Peykhabar News Website reported on Nov. 15. Kia Motors with 9,339 cars, Geely with 5,783 cars, Toyota with 4,528 cars..."(Trend, "Korea’s Hyundai gains lion share of Iran’s car imports market," 11/16/14)

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"Last week, Qorbani announced that Benz, Volkswagen, Volvo, Fiat, Rover, Skoda, Renault, Peugeot, Kia and Toyota would take part in the Iranian auto expo, adding that the US car-manufacturers would also join the event. 'In case of desirable conditions, General Motors and Ford companies will also attend the event.' He continued that some leading car parts makers, including Siemens, FORD Mendo, Busch, FRW and ACI would attend the gathering. The event will start work on December 10." (Fars News, "55 Giant Int'l Carmakers, Part-Makers to Participate in Iranian Auto Expo," 11/2/14)

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"Indonesian ambassador to Tehran Dian Wirengjurit announced that his country plans to help Iran to set up assembly-line of Toyota cars in Aras Free Zone in the Northwestern parts of the country. 'Negotiations with the head of the Indonesian plant of Toyota Company have been held and he has agreed with launching assembly-line of Toyota cars in Aras Free Zone,' the Indonesian ambassador said in a meeting with Managing Director of Aras Free Zone Mohsen Khadem on Wednesday. The Indonesian ambassador pointed to the production of 1.5 million cars in Iran, and said, 'This is a valuable time to import raw materials and tires to Iran with no third party involved.'" (Fars News, "Envoy: Indonesia Agrees with Setting Up Assembly-Line of Toyota Cars in Iran," 8/20/2014)

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"According to the report, 17 car brands have been permitted to be imported in the current year. The cars include Hyundai (2 models), ABT, Alfa Romeo (2 models), MG, SsangYong, Toyota, Renault (6 models), and Kia (2 models)." (Azer News, "Iran bans imports of renowned car brands," 5/27/2013) 

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According to its Annual Report filed with the SEC for fiscal year 2013: "During the fiscal year ended March 31, 2013:

• P.T. Toyota-Astra Motor (“TAM”), an Indonesian company, sold three Toyota vehicles to the Iranian embassy in Indonesia. P.T. Toyota Motor Manufacturing Indonesia, an Indonesian company and subsidiary of Toyota, manufactured and sold the vehicles to TAM. TAM is the sole distributor of Toyota vehicles in Indonesia. As of March 31, 2013, Toyota held 49 percent of the shares of common stock of TAM, and PT Astra International Tbk, an Indonesian company, held the remaining 51 percent of the shares of common stock of TAM.
• Tokyo Toyota Motor Co., Ltd., a wholly-owned indirect subsidiary of Toyota, performed maintenance services for Toyota vehicles owned by the Iranian embassy in Japan.     
• Toyota Tourist International, Inc., a majority-owned subsidiary of Toyota, obtained two visas from the Iranian embassy in Japan in connection with certain travel arrangements."

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"Toyota Motor Corp (7203.T) said on Wednesday it had suspended auto exports to Iran indefinitely since June, amid growing international scrutiny of companies dealing with the country." (Reuters, "Toyota says halted exports to Iran since June," 8/11/2010)

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"Sales of Toyota vehicles in Iran are handled by an independent Iranian company, and over the last five years, Toyota’s sales there represented less than a 1 percent share of the Iranian market, said a company spokesperson, Mira Sleilati." Toyota was the recipient of $154.4 million in US funds and revenues to conduct business in Iran.  Their business activities in Iran are active.  (The New York Times, "Profiting from Iran, and the U.S.", 3/6/2010)

Hamid Morshedi lists himself as General Manager at Kern Liebers Pars Iran. 

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Kern-Liebers is an industrial component manufacturer specializing in springs, stampings, and textile machine components. The company specializes in the automotive industry, and claims that two thirds of the world's cars are equipped with Kern-Lieber components (Company Website). 

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Iran Fanarlool Co, an Iranian component manufacturer, announced on their website that Kern-Liebers had purchased a 30% stake in the company in 2007. This was also announced on Kern-Liebers's website.

Hyundai Motor is not listed on IPERS February 2022 Iran Prohibited Companies list.

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Hyundai Motor Company is listed on Texas's 2021 Comptroller List of Companies Engaging in Scrutinized Business Operations in Iran.

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On February 16, 2021, Iowa Public Employees' Retirement System removed Hyundai Motor from its Iran Prohibited Companies List. 

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Hyundai Motor is listed on the 4Q 2020 Minnesota State Board of Investment List of Unauthorized (Scrutinized) Iran Companies.

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"Korea’s Hyundai has quietly removed from its main website the details of two companies that represent it in Iran, Asbe Bokhar magazine reported on July 20. Asan and Pakro are reportedly the two representative companies that have disappeared from the website’s list of authorised international Hyundai vendors. Iran’s Kerman Motors and Soroush Diesel Mabna CO remain on the list. Despite the deletion, Asan and Pakro can continue to operate in the field of Hyundai after-sales service in Iran. Both companies confirmed they intended to do so." (BNE, "Hyundai removes two representative companies in Iran from website," 7/20/20). 

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Hyundai Motor is listed on Iowa's June 2020 Iran Divestment list.

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On May 15, 2020, the IPERS identified Hyundai Motor on its Iran Prohibited Companies List.

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As of December 2020, Rhode Island continues to list Hyundai Motor as an Iran scrutinized company for active involvement of at least $50 million in Iran's energy sector. The company sells its vehicles in Iran through Tehran-based Kerman Motors, Assan Motor, and Soroush Diesel Mabna. (Company website, 12/2019).

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The company's minority-owned subsidiary Hyundai Wia lists Control Afzar Tabriz Co Ltd as its sales and service agent in Iran. (Company website, 12/2019)

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On January 20, 2020, Minnesota SBI listed Hyundai Motor as a scrutinized investment. The managers are explicitly instructed to refrain from purchasing securities on this list. 

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In 2018 and 2019 Hyundai Motor was listed on the Texas Comptroller List of Companies Engaging in Scrutinized Business Operations in Iran.  

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"South Korea’s Hyundai resumed cooperation with Iran after the ratification of the Joint Comprehensive Plan of Action (JCPOA) or Tehran’s nuclear deal with world powers, to manufacture its I10, I20, and Accent models in 2017.

However, after U.S. President Donald Trump’s decision to leave JCPOA, Hyundai also prepared itself to end cooperation with the Iranian company Kerman Khodro in the Special Economic Zone, Arg-i Jadid." (Radio Farda, 6/13/2018).

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"In an interview with the parliament-affiliated website, Valiyollah Maleki said June 12, 'Mazda and Hyundai’s interests in the U.S. market are much more than in Iran, and they will not sacrifice their profit for the sake of Iran.'"(Radio Farda, "Mazda, Hyundai Leave Iranian Market, Affecting Cars and Shipping," 6/13/18).

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"South Korea’s Hyundai Motors is consolidating its presence in Iran through a joint production deal with local carmaker Kerman Motor. Under a joint venture deal signed in March 2017, Kerman Motor currently assembles three Hyundai models namely i10, i20 and Accent in the central city of Bam, Kerman Province. Assembly lines of two other models, Elantra and Tucson are to be launched, ILNA quoted Kerman Motor’s marketing manager as saying." (Financial Tribune, "Hyundai Asserting Stronger Presence in Iran Auto Industry," 1/15/18)

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In 2018 the U.S. state of Iowa listed Hyundai Motor on its Iran prohibited companies list rendering Hyundai Motor ineligible for investment and/or state contracting.

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South Korea's Hyundai Motor Group is looking for a stronger presence in Iran's auto market through better services and improving relations with car buyers, says the chief executive of Kerman Motor Company. "Following Kerman Motor's success in assembling and distribution of Hyundai i10 and i20 and last year's deal to assemble the Accent model, the Korean carmaker is eager to have a bigger footprint in Iran's market," Saman Firouzi said, according to Kerman Motor's website. In March he had said that his firm would launch the Hyundai Accent production line in September." (May 2017)

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"South Korea's Hyundai Motors, Middle East and Africa office director, Mike Song, signed a production agreement with Iran's Kerman Motors to start production of the Elantra model in the local firm's Kerman production facility, in the south of the country. The deal signed in Kerman on March 13 by representatives of both firms. Saman Firouzi, chief executive of Kerman Motor, said that his firm will also launch Hyundai Accent production line in September 2017. "Our target is to employ 10,000 people by 2019," he added. The company previously agreed with Hyundai at the end of 2016 to begin production of the Hyundai i10 and i20 hatchback models which are likely to go on sale following the Iranian New Year." (Financial Tribune, "Hyundai, Kerman Motor Sign Deal to Produce Elantra in Iran," 3/13/2017).

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Before the implementation of the JCPOA, Hyundai had sold around 20,000 auto part units to Iranian cars annually. (Korea Herald, “Hyundai Motor to resume export of auto parts to Iran in April,” 3/15/2016).

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"Iran totally imported 51,967 cars in the first half of the current Iranian calendar year (March 21 - September 22). Hyundai with 24,991 cars was the main exporter of cars to Iran in the mentioned period..." (Trend, "Korea’s Hyundai gains lion share of Iran’s car imports market," 11/16/14)

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"According to the report, 17 car brands have been permitted to be imported in the current year. The cars include Hyundai (2 models), ABT, Alfa Romeo (2 models), MG, SsangYong, Toyota, Renault (6 models), and Kia (2 models). Previously, 25 car brands were included in the list, such as South Korean brands (Kia and Hyundai), Chinese brands (SAIC motors), Italian brands (Fiat, Alpha Romeo), Japanese brands (Honda, Mitsubishi), German brands (ABT), and Swedish brands (Volvo)." (AzerNews, "Iran bans imports of renowned car brands," 5/27/2013) 

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"The report said that aside from Nissan and Peugeot, such car brands as Chinese Lifan, Mazda, Suzuki, and Hyundai are still being manufactured in Iran." (Trend, "Five reasons why Iran's car manufacturing suffers blow after blow," 11/27/2012)

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Hyundai Motor and several of its subsidiaries and affiliates have reported business dealings with Iran, including:

• Hyundai Rotem: 57.64% owned – sale of rail cars
• Hyundai HYSCO: 26.1% owned, primary shareholder; 13.9% owned by Kia Motors, second largest shareholder – sales of steel pipes
• Hyundai Mobis: 16.88% owned by primary shareholder Kia Motors – equipment for auto manufacturing

Hyundai Motor's business in Iran can be broken down into exports, manufacture, and orders:

Exports

Hyundai sells passenger cars through Assan Motors, its exclusive distributor in Iran since 1992. Assan trumpets its “tremendous growth” in recent years. The Hyundai Iran website also features dozens of Iranian dealerships that sell Hyundai vehicles.

Business Monitor’s “Iran Autos Report Q4 2010” (September 2010) reports as of February 2010, Hyundai Motors was only one of six carmakers that have secured license to import cars into Iran. In August 2010, Hyundai reportedly ceased vehicle exports to Iran.

In July 2011, the Korean daily JoongAng reported that due to pressure from United Against Nuclear Iran, Hyundai had ceased its exports to Iran for two months in early 2011 but quickly reversed course: "In February, Hyundai Motor and Kia Motors - both affiliates of Hyundai Motor Group - stopped shipping automobiles to Iran after the companies came under pressure from United Against Nuclear Iran (UANI), an American lobby group, for not complying with U.S. sanctions. In April, they reversed track, saying it 'wasn’t right' that they continue to withhold their products from Iranians. It was the first time that the Korean company decided to stop exports due to political pressure from a third party or country."

Manufacture

In 2004, the first Iranian-made Hyundai vehicles were produced with local partner Kerman Motor Company. The Hyundai Verna model was initially set at 20,000-30,000 units per annum (upa) with plans to be increased to 100,000 upa. (World Markets Analysis, “First Iranian-Made Hyundai Models Rolled Out in Kerman,” 9/9/04)

The “CKD [Complete Knock Down] assembly facility” with Rayen Vehicle Manufacturing Company (RVMCO) in Tehran manufactures the Hyundai Accent and Elantra. CKD refers to a kit (e.g. engine, transmission, battery, etc.) used by foreign affiliates to assemble manufactured goods.

The Iran Khodro Diesel Co. (IKDC), a manufacturer of commercial vehicles (trucks, buses, minibuses, vans), produces the Hyundai Mighty (Light Truck) and Hyundai Chorus (Minibus).

In July 2009, it was reported the auto-manufacturing companies Kerman Khodro and Rain Khodrosazan would introduce Hyundai’s smallest car, the i10. Rain Khodrosazan reportedly also manufactures the Hyundai Avante, Verna and Sonata.

Orders

August 2010: Reports indicated that Hyundai Motors and Kia Motors had shipped a total of 17,000 vehicles to Iran during the first half of the year before suspending their exports.

September 2006: Reuters reported that Hyundai Motor won a $227 million order to supply vehicles to Iranian government agencies and taxi operators. The models supply included sedans and SUVs. In 2007, it was expected Hyundai would also be rewarded another 8,500-unit order.
 

Hyundai Rotem in Iran
57.64% owned

Hyundai Rotem is a Korean manufacturer of rolling stock, defense products and plant equipment.

• 2004: Hyundai Rotem won a contract to deliver 150 DMUs (diesel multiple units/railcars) to the Islamic Republic of Iran Railways. The deliveries were scheduled for between 2007-2009.
• 2004: In consortium with the Marebuni Corporation, Hyundai Roten won a 110 million euro for 120 Diesel Multiple Unit (DMU) cars from Irankhodro Rail Industries Company (IRICO). The delivery was scheduled the beginning of 2007 through to 2008. (Rotem Website)
• Iran is listed as one of their “Global Markets” for “Railway Systems.” 

U.S. Government Business

Hyundai Motors received over $14.7 million in U.S. government contracts this past decade.

Karsan Otomotiv is Turkey’s only multi-branded commercial vehicle producer. Karsan’s website notes that it “makes the production of Peugeot Partner under Peugeot license, Hyundai HD 35/75 under Hyundai license, Renault Trucks Premium Uzunyol, Premium Lander and Kerax under Renault Trucks license, Citroen Berlingo under Citroen license and J9 Premier under its own brand.” Karsan was ranked 267^th in the list of “Turkey’s Top 500 Industrial Organizations” in 2008. (Company Website)

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On March 9, 2011, following extensive discussions, UANI announced that Karsan had ended its business in Iran. Karsan had demonstrated that it had withdrawn from Iran and committed to foregoing any business in Iran until such time as Iran fulfills its obligations to the international community related to its illegal nuclear program. (UANI, "UANI Applauds Turkish Company Karsan for Ending Its Business in Iran," 3/9/11)

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Karsan entered into a five-year exclusive distribution agreement in 2007 with Iran’s Sanat Khuodro Kamau to export J9 minibus models to Iran. (Karsan Report, May 10, 2007)

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A Karsan company report on February 15, 2008, notes that the company “signed a contract to export J9 Premier to Iran, which will be sold to some Middle East countries via Iran.”

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A July 2010 press release indicated that the updated J10 model would be sold in Iran, Syria, and African countries. (Press Release)

In February 2016, "China's Lifan launched its 820 executive-sedan in the local market at the time for 820 million rials ($23,500) at that point. The introductory offer has since been rescinded, and the car sells for over 900 million rials." (Finacial Tribune, "Iran Auto Sector 2016: Playing for High Stakes," 1/1/2017).

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"Chinese carmaker Lifan plans to produce 60,000 cars annually in Iran. Shang You, President of Lifan, said in a meeting with the managing director of Iranian carmaker Kerman Motor, it was decided that 60,000 cars to be assembled by the Iranian company in the next Iranian calendar year, which starts on March 21, Iran's Mehr news agency reported on Jan. 10. In line with the Iranian administration's policy, Lifan will move toward transferring the production of car parts to Iranian manufacturers, Shang You said." (Trend, "China carmaker plans to boost car production in Iran," 1/10/2015

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"American International Group is likely to gain 'tens of millions of dollars' from the initial public offering of a Chinese automaker that does business with Iran, the South China Morning Post reported. AIG, through a unit, owns 13.5 percent in Chongqing-based Lifan Industry Group Co., which exports motorcycles to Iran and where a local factory has a licensing agreement to assemble Lifan's cars from imported kits, the Hong Kong-based English- language newspaper reported today, citing Mark Herr, AIG's New York-based vice-president of media relations." (Bloomberg, "AIG Will Gain from IPO of China Motor Exporter to Iran," 10/14/2010) 

" A 2006 joint venture between former Chávez and Iran’s former President Mahmoud Ahmadinejad to build cars through Venirauto Industrias C.A. generated losses and was largely unsuccessful." (January 2018)

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"Iran Khodro, the country's largest automaker, aims to quadruple to 60,000 the number of cars it assembles each year in a venture with the Venezuelan government, in a sign of deepening commercial ties between two U.S. foes. Venirauto Industrias CA is owned by the Venezuelans, Iran Khodro and Iran's second-biggest carmaker, the Saipa Group, Iran Khodro's export deputy, Yaser Seifvand, said in an interview yesterday at his company's headquarters outside Tehran. The South American plant's current annual output is 16,000 vehicles, Seifvand said." (Bloomberg, "Iran Khodoro to Make More Cars in Senegal, Venezuela," 10/11/2010)

“Business in Iran has grown over the past year. Now we have stopped our activities for the time being,” “We’ve won two larger contracts in 2017. This is not overly important, but it’s not small either. This was also an opportunity in terms of margins that we’re now losing,” (8/11/18)

"Auto supplier Duerr stops Iran business due to sanctions"

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Durr AG lists two representatives for the Iranian market on its company website.

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A division of Durr AG, Durr Somac, lists a sales office in Iran. (Company Website)

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Additionally, a subsidiary of Durr AG, Carl Schenck AG, also lists an office in Iran. (Company Website)