Daimler set for Iran

Daimler Trucks is poised to return to the Iranian market, having signed letters of intent with local cooperation partners Iran Khodro Diesel (IKD) and the Mammut Group.

Daimler AG has had successful business relations with IKD for the past 50 years (IKD is a subsidiary of Iran Khodro Industrial Group, holding more than 50% market share).

Areas of cooperation include a joint venture for local production of Mercedes-Benz trucks and powertrain components plus the establishment of a sales company for Mercedes-Benz trucks and components. There are also plans for Daimler to return as a shareholder in the former engine joint venture, Iranian Diesel Engine Manufacturing. In addition, both partners are looking at establishing a joint venture for local sales of Mercedes-Benz commercial vehicles.

Wolfgang Bernhard, member of the Board of Management of Daimler AG, responsible for Daimler Trucks and Buses, says: “Daimler commercial vehicles have always had an excellent reputation in Iran. Now, there is a huge demand for commercial vehicles, especially trucks. We plan to quickly resume our business activities in the market.”

With its growth potential following many years of sanctions and the pent up demand in the transport sector, Iran offers promising opportunities for Daimler Trucks. The Ministry of Industry, Mine and Trade estimates that about 200 000 commercial vehicles will be replaced in the coming years – some 56 000 of them in the next three to five years alone.

The first Mercedes-Benz Actros and Axor trucks could be supplied to the country in completely knocked down (CKD) kit form before the end of the year.

In addition to the plans for Mercedes-Benz trucks, Daimler Trucks also sees great opportunities for Mitsubishi Fuso, especially in the light duty segment with its Canter.