FUSO Makes Foray into Iranian Market
||FUSO makes a foray into the Iranian market as part of Daimler Trucks’ sales strategy
||FUSO to meet increasing commercial vehicle demand after sanctions are lifted
||A sales contract made with a local distributor
||A local office to be opened in Q1 2016 to carry Daimler Trucks’ brands
Kawasaki, Japan – Mitsubishi FUSO Truck and Bus Corporation (MFTBC), one of Asia’s leading commercial vehicle manufacturers, announced on January 26, 2016 that it will enter the Iranian market as part of Daimler Trucks’ sales strategy. FUSO will enter this market early to meet the increasing commercial vehicle demand that is anticipated once economic sanctions on the country are lifted.
FUSO has made a sales contract with Mayan, which will serve as FUSO’s distributor in Iran. Mayan is part of the Dubai-based Mammut Group, a major truck bodybuilder and distributor in the Middle East. Sales of FUSO’s light-duty Canter through Mayan’s dealer network will begin in 2016.
Daimler Trucks intends to open a regional representative office in Tehran carrying the Mercedes-Benz and FUSO brands in the first quarter of 2016 in order to contribute to economic growth and infrastructure improvements in Iran.
Despite the sanctions that went into effect in 2010, Iran remains one of the largest national economies in the Middle East, right behind Saudi Arabia and the United Arab Emirates. Iran’s gross domestic product (GDP) growth rate before the sanctions was 4%, and had been less than 2.5% within the last decade, but the country had a GDP of 360 billion US dollars in 2014. Industry accounts for almost half of the Iranian national economy. Iran’s Ministry of Roads and Transportation estimates that commercial vehicle replacement demand for the next three to five years will total some 30,000 vehicles.
Daimler Trucks opened a regional sales center (Regional Center MENA) in Dubai in October of 2015 with the goals of strengthening relationships with local customers, responding rapidly to market changes, and reducing lead times in the Middle East and North Africa (MENA). The center is the first of six regional centers opened worldwide by the commercial vehicles business unit. From its base in Dubai, Daimler Commercial Vehicles MENA now supports and manages distribution in 19 countries, including Iran (Afghanistan, Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Syria, Tunisia, the UAE, and Yemen).
Daimler has had a sales presence in the Iranian market with Mercedes-Benz trucks and passenger cars since 1953 up until sanctions took effect in 2010, selling as many as 10,000 vehicles there every year, most of them commercial vehicles.
Based in Kawasaki, Japan, Mitsubishi Fuso Truck and Bus Corporation (MFTBC) is one of Asia’s leading commercial vehicle manufacturers. In 2014, the company sold a total of about 174.595 vehicles including light-, medium- and heavy-duty trucks and buses, a 1.7% increase over the previous year. Daimler AG owns 89.29% of MFTBC shares and various Mitsubishi group companies own 10.71% of MFTBC shares. MFTBC is an integral part of the Daimler Trucks Division of Daimler AG.