Daim­ler Trucks set­ting the course for a re­turn to the Ira­nian mar­ket

The Witness - Wheels - - TRANSPORT - — Wheels Reporter.

STUTTGART/TEHRAN — Daim­ler Trucks, the world’s lead­ing truck man­u­fac­turer, is set­ting the course for a re­turn to the Ira­nian mar­ket, hav­ing signed let­ters of in­tent with its lo­cal co-op­er­a­tion part­ners Iran Kho­dro Diesel (IKD) and the Mam­mut Group.

Daim­ler AG has al­ready 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 Middle East and North Africa (Mena) re­gion hav­ing more than 50% mar­ket share in Iran and has been co-op­er­at­ing with Daim­ler for over half a cen­tury.

The ar­eas of co-op­er­a­tion 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. Fur­ther­more, there are 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 about to 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.

Dr Wolf­gang Bern­hard, mem­ber of the board of man­age­ment of Daim­ler AG, re­spon­si­ble for Daim­ler Trucks and Buses said: “Daim­ler com­mer­cial ve­hi­cles have al­ways had an ex­cel­lent rep­u­ta­tion in Iran. 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.”

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.

De­spite the sanc­tions, Iran was one of the largest na­tional economies in the Middle East, with a nom­i­nal gross do­mes­tic prod­uct (GDP) of $415 bil­lion in 2014. In­dus­try ac­counts for al­most half of the Ira­nian na­tional econ­omy.

PHOTO: QUICKPIC

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