Daimler Trucks to return to the Iranian market image

Daimler has announced it will return with its truck division to the Iranian market, having signed letters of intent with its local cooperation partners Iran Khodro Diesel and the Mammut Group.

By signing the letter of intent, Daimler Trucks has started the process for a re-entering the Iranian market, following the elimination of the persistent sanctions regime and export control regulations. The areas of cooperation include a joint venture for the local production of Mercedes-Benz trucks and powertrain components, plus the establishment of a sales company for the division and components. Furthermore, there are plans for Daimler to return as a shareholder to the former engine joint venture Iranian Diesel Engine Manufacturing. In addition to this, both partners are looking at establishing a consortium for local sales of Mercedes-Benz commercial vehicles. Daimler Trucks also intends to open a representative office in Tehran during the first quarter of 2016, the Stuttgart, Germany-based company said. The first Mercedes-Benz Actros and Axor trucks could be supplied to the country in the form of CKD (completely knocked down) kits before the end of the year.

Daimler said it also sees great opportunities for Mitsubishi FUSO, especially in the light-duty-truck segment, and to open up this market, it has signed a distribution agreement with Mayan for the FUSO brand. Mayan is part of the Dubai-based Mammut Group, one of the Middle East’s largest truck bodybuilders and distributors. The German company has been present in the Iranian market with Mercedes-Benz trucks and passenger cars since 1953, interrupted only by the sanctions phase between 2010 and 2016. Mercedes-Benz commercial vehicles are still existent there and remain very visible on Iran’s roads. Previously, Daimler sold up to 10,000 vehicles per year in Iran, most of them commercial vehicles.