Kia is a household name in the Islamic republic and its affordable, boxy Pride represents between 30 and 40 per cent of vehicles on the road. Kia Motors of South Korea has now suspended exports to Iran, ending one of Tehran’s most successful commercial alliances as international sanctions strike home, the Financial Times reported.

The export suspension comes at a time of heightened tension between Iran and South Korea, a US ally that last week imposed unilateral sanctions on Tehran because of its nuclear ambitions. Kia has substantial interests in the US, which it may be trying to protect by cutting links with Iran.

Seoul implemented the embargo despite a vitriolic attack from one of Iran’s vice-presidents, Mohammad Reza Rahimi, who said South Koreans needed to be “slapped”. His rhetoric chilled many officials in Seoul, which gets about a tenth of its oil from Iran. The country is also a crucial market for South Korean electronics companies such as Samsung and LG.

Kia said it had stopped all exports to Iran last month, ending the sale of completed cars, assembly kits and spare parts before South Korea imposed its sanctions. Regardless of any legal restrictions, Kia assessed that its relationship with Iran was losing its commercial rationale.

Read more in the Financial Times