Reporting "Asre Khodro", Carmakers that were once sales leaders in Iran -- including Peugeot-Citroen (PSA), Renault, and Volkswagen -- are now jockeying to re-enter the market. According to Automotive News, they have been positioning themselves for a return since 2013, when negotiations were initiated. 

Four years ago, before sanctions were placed, PSA held the largest share. That year, Iran had 1.6 million new vehicle registrations. According to Thomas Wuelfing, chairman of Germela, a German trade consulting firm specializing in the Middle East, Iran's market is poised to expand to 2 million units. "It's the last big emerging market," he noted.

PSA is already in talks with Iran Khodro, the nation's largest manufacturer, to restart local production. Renault, for its part, is reportedly buying a stake in Pars Khodro, whose parent company SAIPA is the is the second-largest Iranian automaker. Meanwhile, Volkswagen seeks to re-enter the market with its Skoda and SEAT brands. Before sanctions, VW manufactured teh Gol compact locally.

This time, however, European companies are facing new competition with lower-priced Chinese cars. Iran is a "gateway to the wider Middle East," said Michel Jacinto, a Germela analyst. The firm is setting up a "matchmaking" tour in Germany with heads of top Iranian automakers in September.

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