Daimler Trucks poised to return to Iran market
Daimler Trucks is planning a return to the Iranian market after signing letters of intent with its local cooperation partners Iran Khodro Diesel (IKD) and the Mammut Group.
Daimler AG have had successful business relations with IKD for the past 50 years. IKD is a subsidiary of Iran Khodro Industrial Group, the largest vehicle manufacturer in the MENA region, with a 50% market share in Iran.
The 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 Co. (IDEM). In addition to this, both partners are looking at establishing a joint venture for local sales of Mercedes-Benz commercial vehicles.
Daimler and IKD are looking to once more benefit from each other’s competitive advantages to satisfy the large demand for trucks. In the short term, therefore both parties have a strategic alliance on a win-win basis through joint ventures in their scope.
"Daimler commercial vehicles have always had an excellent reputation in Iran. And right now, there is a huge demand for commercial vehicles, especially trucks,” said Dr. Wolfgang Bernhard, member of the board of management of Daimler AG responsible for trucks and buses.
“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,” he added.