Western sanctions on Moscow over its Feb. 2022 invasion of Ukraine have provided Iran’s top carmakers with an opportunity to re-enter the Russian market. Iran Khodro (IKCO) vehicles made a new debut in Russia in July, and Saipa is expected to launch a range of cars later this year.

While Russian importers see an opportunity to fulfill demand for budget cars, experts have explained to Amwaj.media that international factors—combined with an altered approach from Iranian manufacturers—will determine whether these vehicles can compete against...