Daimler Trucks to re-enter Iran

Following the recent lifting of international sanctions on Iran, Daimler Trucks has moved quickly to announce its intention to re-enter the Iranian market with its Mercedes-Benz and Fuso brands.

Daimler Trucks says it plans to open an office in Tehran in the first quarter of 2016, and that it could be selling Mercedes-Benz Axor and Actros trucks in CKD (completely knocked down) form by the end of the year.

The global trucking giant has already signed letters of intent with local commercial vehicle specialists Iran Khodro Diesel (IKD) and Mammut Group, with which Daimler will partner to fast-track its activities in the region.

Daimler's relationship with IKD goes back over 50 years, the partnership only interrupted by sanctions between 2010 and 2016. With Iran's nuclear program recently found to be in compliance with international stipulations, those sanctions were lifted on January 16 – paving the way for Daimler Trucks to re-enter the market.

IKD is a subsidiary of the Iran Khodro Industrial Group, the largest vehicle manufacturer in the Middle East and North Africa (MENA) region, and a group that enjoys a 50 per cent market share in Iran.

Daimler Trucks says there's a massive pent-up demand for commercial vehicles in Iran, with the Iranian government itself projecting that 200,000 vehicles will need replacing in coming years, 56,000 of those in the next three to five.

To capitalise on that opportunity Daimler Trucks will enter into a joint venture with IKD to produce Mercedes-Benz trucks and powertrain components and to establish a sales company. Plans are also afoot to re-enter a former engine joint venture with Iranian Diesel Engine as a shareholder, while Daimler Trucks has signed a distribution agreement for the sales of Fuso trucks with Mayan, a subsidiary of the Dubai-based Mammut group.

With Iran's GDP totalling $US 415 billion in 2014 despite the sanctions, Daimler Trucks chief Dr Wolfgang Bernhard says the nation is rich with opportunity.

"Daimler commercial vehicles have always had an excellent reputation in Iran," he said.

"And right now, there is a huge demand for commercial vehicles, especially trucks. We plan to quickly resume our business activities in the market there. The signing of the letters of intent with our local partners IKD and Mammut Group are important pre-requisites to resume business quickly."

Previously Daimler sold around 10,000 vehicles a year in Iran, most of them commercial vehicles.

Daimler Trucks' operations in Iran will be overseen by Daimler Commercial Vehicle Middle East & North Africa, which supports 19 countries from Morocco to Pakistan and is responsible for everything from the Mercedes-Benz Citan city van to the Actros heavy-duty truck.