Star of Mercedes-Benz Ignites the Sky of Commercial Vehicle Industry

Khodrocar – The contract of producing commercial vehicles signed between IKCO-Diesel & Mercedes-Benz, Tuesday, and both parties agreed to have another contract to produce engines in Iran. 

We have to mention that IKCO & Mercedes-Benz were partners long time ago and had a contract to assemble the commercial vehicles and passenger cars of this great German automaker in Iran. 

Commercial vehicle market review in recent years, show that different brands had contracts with Iranian companies to assemble or localize vehicles, but they weren’t successful due to low production rate and vast variety. As the result, auto part manufacturers couldn’t have a proper plan to support the commercial vehicles. 

Now, we have to see that if the contract between IKCO & Benz is able to encourage auto parts makers and will other commercial vehicle brands use an Iranian-German engine in their products? 

"Emphasizing on the localization is an important section in all the auto contracts and the new contract between IKCO & Benz would be a great opportunity for our industry." Mehrdad Amini, commercial vehicle market expert said to Khodrocar. 

"Iranian companies are great at assembling but they can’t find export markets due to higher final prices. So, this kind of contracts can guide our new products through the global market and introduce Iran as the new hub in the region. Also, we can produce better cars to get more power in the global market." He said. 

"Both IKCO & Benz agreed to have another contract in order to produce auto engines. This means new technologies will come to Iran and other local brands should use them as well." Amini added. "If two or three different engines produce duo to contract, then localizing the heavy vehicle's engine would be easier and the necessity for them will vanish completely." 

"Importing the technology of producing engines from Germany is crucial. Also, producing commercial vehicle's engine in Iran with better after sales service and localization would result in lower final price then step by step Chinese and European low quality products will disappear from Iran's market." He said. 

Right now, the contract between IKCO & Benz is great if it has technology importing along. The contract of producing engines with German partner has to be signed because it would be a great movement in our auto industry.

Khodrocar Translator: Amin Zamani