VW returns to Iran after 17-year absence

Volkswagen says its flagship brand is returning to Iran after a 17-year absence.

The Wolfsburg-based carmaker said in a statement Tuesday it will start selling Tiguan SUVs and Passat sedans through importer Mammut Khodro.

Mammut Khodro is already selling trucks made by Volkswagen Group's Scania division.

Volkswagen began selling vehicles including the classic Beetle in Iran in the 1950s but withdrew in 2000.

Volkswagen said in a statement that restarting exports offers the company a chance to get to know local market conditions and re-establish the "Volkswagen" brand.

It cited Iranian government estimates of a car market with 3 million new vehicle sales per year.