MAN Company from Germany to Manufacture Trucks in Iran

The German company MAN, one of the world's powerful players in the heavy vehicle manufacturing sector, intends to produce trucks in Iran. Heinz Jürgen Löw, a senior member of MAN's board of directors, stated at the Tehran Transportation Conference, "We are returning to the Iranian market with improved quality and more powerful, cost-effective solutions. Iran has good potential for the heavy vehicle market, and the Iranian automotive industry has seen significant growth over the past decade. Currently, Yavaran Khodro Shargh acts as the exclusive representative of MAN in the bus sector, and Shiran Diesel is involved in truck production in Iran. We have transparently entered the Iranian market with these two companies and plan to produce trucks in addition to urban buses. We have just entered the truck market in Iran, and Shiran Diesel Motor has established a sales and after-sales service center, with the first series of products now available in the Iranian market. At the same time, we are introducing our products to the Iranian market, and we aim to play a larger role in the commercial vehicle market, aspiring to become one of the top three players in this sector." Iran has good potential for the heavy vehicle market, and the Iranian automotive industry has experienced significant growth over the past decade. Heinz Jürgen Löw, a senior member of MAN's board of directors, also noted that Mohammad Ali Karimi, the CEO of Yavaran Khodro Shargh, which produces MAN buses in Iran, discussed the company's collaboration with MAN Germany at the Tehran Transportation Conference, stating, "Considering that in 2005 and 2006 this bus was recognized as the best bus in the world, it took about two years to manufacture it locally. In 2009 and 2010, we managed to produce according to our planning, but with the imposition of sanctions from 2011 onwards, production significantly decreased, severely impacting the company. In 2011, our production plan was for 150 units, but unfortunately, only 84 units were produced. In 2012 and 2013, the plans were to produce 200 and 250 buses respectively, but only seven and eight units were produced in those years. In 2012, with the increase in exchange rates and the imposition of sanctions, production dropped sharply. From the second half of 2013, with the improvement of the political and economic climate and the change in the perspectives of foreign companies, we were able to increase production through banking exchanges. If the JCPOA had not been implemented, we would have had to shut down the company. This year, production is expected to reach 100 units, and we are also looking to start producing gas-powered buses in Iran. Currently, over 50% of the bus parts are produced domestically, which is why we sell intercity buses for 720 million tomans with a payment plan of 60% cash and 40% in 20-month installments." Additionally, beyond bus production, MAN plans to start truck production in Iran from 2017. In this regard, Saeed Ramadan, the CEO of Shiran Diesel, the representative of MAN trucks in Iran, stated, "MAN Germany has entered into cooperation with Shiran Diesel Motor for the export of various types of trucks and tractors to Iran. We are at the starting point of our activities in the Iranian truck market. MAN trucks are priced between 400 to 520 million tomans, and the first phase of production will be conducted in a CKD format, aiming for 20% localization in the first year, and we are currently in the study phase." MAN is a subsidiary of the Volkswagen Group, and besides MAN, Scania, another truck manufacturer within the Volkswagen Group, also has extensive plans for truck production in Iran. This company collaborates with Mamoot for truck production and with Oghab Afshan for bus and minibus production in Iran. Following the nuclear agreement, senior Scania executives have visited Iran several times, and during the latest visit, the CEO of Scania promised investment in Iran. Henriksson, the CEO of Scania, stated, "Scania Sweden is investing in the production of buses and minibuses in Semnan, and the mutual cooperation between Scania and Iranian companies in the construction and equipping of road transport fleets will increase. The Swedish company is looking to source parts for Scania minibuses from Iranian automotive companies to eliminate the need for purchasing parts abroad, and this production could pave the way for the widespread export of these products globally." The CEO of Scania, while referring to the lifting of Western sanctions against Iran and the ease of economic exchanges between the Swedish and Iranian sides, said, "Iran has significant economic capacities that encourage any company or country worldwide to increase investment in this country, and Scania is no exception. We hope to further increase the volume of exchanges between the two countries. Currently, Scania's assessments indicate that the products produced by this company in Iran are of the highest quality among Scania manufacturers worldwide. Scania is a well-known producer of passenger buses globally, and with the planning and increased cooperation among major Iranian automotive companies, we could witness the export of Oghab Afshan buses to European and Western Asian countries by the end of 2016." Besides bus production, Scania also has extensive plans for producing its new generation of trucks in Iran. One of the products that Scania has planned for Iran is the R 560 tractor, which has an eight-cylinder engine, Euro 5 emission standards, and a power output of 560 horsepower. The CEO of Scania mentioned at the product launch event at Mamoot that "Iran has gone through tough years and has achieved significant progress during this time. We stand firmly behind Mamoot, and this company, in turn, stands behind its customers. I hope Scania, Mamoot, and customers will be like a family, and Iran will be the country of Scania. We intend to establish Iran as a hub for exporting our products in the region."