Daimler Trucks has paved the way for its return to the Iranian market with the signing of letters of intent with both Iran Khodro Diesel (IKD) and the Dubai-based industrial contractor Mammut Group.
The areas of cooperation include a joint venture for local production of Mercedes-Benz trucks and powertrain components and the establishment of Iranian sales operations for these products in Q1 2016.
Iran’s Ministry of Industry, Mine and Trade has estimated 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.
“Daimler commercial vehicles have always had an excellent reputation in Iran, and right now, there is a huge demand for commercial vehicles, especially trucks,” noted Dr Wolfgang Bernhard, Daimler board member and head of Daimler Trucks and Daimler Buses.
“We plan to quickly resume our business activities in the market there, and our letters of intent with local partners IKD and Mammut Group are important pre-requisites to resuming business quickly.”
Daimler has also officially announced its plans to return as a shareholder in the former engine manufacturing joint venture Iranian Diesel Engine Manufacturing (IDEM).
Daimler held a 30% stake in IDEM prior to the imposition of international sanctions and Iran’s Press TV has reported that Daimler is paying 42 million euros ($45.8m) to regain its stake in the company.
With the official confirmation of a deal between Daimler and Iran Khodro, Daimler can finally resume its direct influence over the production and brand management of Mercedes-Benz in Iran.
The first Mercedes-Benz Actros and Axor trucks could also be supplied to the country in the form of CKD (completely knocked down) kits before the end of the year.
Daimler and Mammut Group subsidiary Mayan have also signed a distribution agreement for the Fuso with the aim of popularising the highly successful Canter light-duty truck in the Iranian market.
