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Daimler Trucks has signed letters of intent with its local cooperation partners Iran Khodro Diesel (a subsidiary of Iran Khodro Indutrial Group) and the Mammut Group
This is setting the course for their return to the Iranian market as Daimler and IKD could both benefit from each other’s competitive advantages to satisfy the large demand for trucks.
The areas of cooperation include a JV for local production of Mercedes-Benz trucks and powertrain components in addition to the establishment of a sales company for Mercedes-Benz trucks and components. There are also plans of Daimler returning as a shareholder in the former engine JV Iranian Diesel Engine Manufacturing Co. (IDEM) as well.
Dr. Wolfgang Bernhard, member of the board of management of Daimler AG responsible for trucks and buses said, “Right now, there is a huge demand for commercial vehicles, especially trucks. We plan to quickly resume our business activities in the market. Our letters of intent with our local partners IKD and Mammut Industries are important pre-requisites to resume business quickly.”
Despite the sanctions, Iran has remained one of the largest national economies in the Middle East, with a nominal gross domestic product (GDP) of US$415bn in 2014. Industry accounts for close to 40 per cent of the Iranian national economy. The Ministry of Industry, Mine and Trade had 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.
The companies aim to have the first Mercedes-Benz Actros and Axor trucks supplied to the country in the form of CKD (completely knocked down) kits before the end of the year.