Preliminary Agreement Signed for Sale of 1,350 Scania Buses to Iran

The Swedish automotive company Scania announced that it has signed a preliminary agreement for the export of 1,350 buses to Iran. This agreement does not signify a final contract but serves as a precursor to the signing of a contract. The agreement was signed during the visit of Stefan Löfven, the Prime Minister of Sweden, along with some government members and a large business delegation to Iran. On Sunday, February 12, Scania wrote on its official website that this memorandum of understanding was signed for the delivery of city buses to Isfahan and four other cities, including Mashhad, with the City Investment Company and the Industrial Production Company of Oqab Afshan, and the first shipment of buses will be delivered by the end of this year. According to the official website of the City Investment Company, this private joint-stock company is fully owned by Bank Shahr. Based on information from the official website of Bank Shahr, the shareholders of this financial institution include municipalities of nine provinces, including Tehran, Mashhad, and Isfahan. The Oqab Afshan Company has represented the sales and assembly of Scania buses in Iran since 2000. Scania states that 350 buses will be delivered to Isfahan and 1,000 buses to four other cities in Iran as a measure to address part of Iran's urban transportation issues. Reports indicate that the problem of air pollution caused by the transportation sector in Iran has increased in recent years, affecting not only human lives but also economically impacting Iran. Scania added that the company 'aims to deliver the most efficient vehicles with the least pollution to Iran.' According to official statistics from the Ministry of Oil, currently, 602 million tons of carbon dioxide are emitted into the air annually from various sectors in Iran, with the transportation sector accounting for 25 percent. Meanwhile, ISNA news agency reported on Saturday, February 11, citing the head of the Swedish economic, industrial, and commercial delegation, that two Swedish automotive companies, Scania and Volvo, are coming to Iran with a complete production line. Mansour Moazzami, Deputy Minister of Industry, Mine and Trade, also mentioned that Swedish companies have reached an agreement on 19 areas of cooperation with the Organization for the Development and Renovation of Industries in Iran, stating that 'we are negotiating with Volvo and Scania to increase the production of heavy vehicles.' Following the implementation of the JCPOA in January of last year and the lifting of sanctions related to its nuclear program, Iran has signed contracts with several European countries in various fields, including the purchase of passenger aircraft.