Omid Ghalibaf, an official representative of Iran's Ministry of Industry, Mines and Trade, told RIA Novosti that Tehran does not rule out setting up a joint venture with Russia to produce cars.

"Joint car production and opening a factory in Iran or in Russia depends on how successfully we can export our cars to Russia and enter its market and how well Iranian models will be accepted in Russia," Ghalibaf said.

Once this data is available, he said, the country will start exploring investments in joint production and development of the car market in Russia.