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Daimler Trucks to return to Iranian market

Staff writer ▼ | January 19, 2016
Daimler Trucks is setting the course for a return to the Iranian market, having signed letters of intent with its local cooperation partners Iran Khodro Diesel (IKD) and the Mammut Group.
Iran truck
Auto industry   Daimler and IKD are working together for 50 years
Daimler AG have 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 MENA region having more than 50% market share in Iran and has been cooperating with Daimler for over half a century.

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. Furthermore, there are plans for Daimler to return as a shareholder in the former engine joint venture Iranian Diesel Engine Manufacturing (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.