Volvo To Make Trucks in Iran

SAIPA Diesel a subsidiary of SAIPA, Iran’s second largest automaker, will start production of three new models of Volvo FM trucks in the coming months.

The company has been producing several models of Volvo trucks in recent years. But according to the local automotive website, Persian Khodro, production of the FM series was halted five years ago.

Volvo Trucks is a global truck manufacturer based in Gothenburg, Sweden, owned by AB Volvo. It is the world's second largest heavy-duty truck brand and a respected name in Iran.

The website said SAIPA is set to produce three new models of the FM trucks namely D13B, D11C, and D13C.

D11C has a 10.8-liter engine with a power output between 330ph to 450ph.

D13B which was introduced by Volvo in 2007 has a 12.8-liter engine and power output between 360ph to 440ph. The model uses Volvo’s Exhaust Gas Recirculation configuration and VGT turbocharger.

D13C also has a 12.8-liter engine and a power output between 380ph to 500ph.

News about the three new trucks entering the local market led to a 2% growth in SAIPA and SAIPA Diesel share value in the local stock market while the bourse in Tehran has generally been on the downward trajectory.

The improving fortunes of the car company could also be due to the upcoming visit of the French Foreign Minister to Iran. Jean-Marc Ayrault is expected to lead a strong trade and economic delegation. Citroen officials are expected to be part of the delegation, which is likely to lead to positive moves in the implementation of SAIPA-Citroen deal.

SAIPA and Citroen signed a joint venture in January. The Iranian firm is set to hand one of its production plants in Kashan in Isfahan Province to Citroen in the coming months.

Saipa Diesel had a successful experience in producing Volvo trucks in Iran. Saipa Diesel’s Volvo sold FH 12 series quickly dominated Iran roads, back in 2005. During the sanctions; however, Saipa started to partner Chinese firms offering cheaper models. 

There are 120,000-130,000 vehicles in Iran's cargo truck fleet with over 25 years in age on average. The Roads Ministry is planning to replace 15,000 old trucks each year. Earlier this week, the ministry signed a contract with Mammut Industrial Group, Scania’s official partner in Iran, over replacing 5,000 old trucks with brand-new Scania models, either assembled or imported by Mammut. 

Iran Khodro Diesel, Middle East’s largest automaker, has also inked a deal with Germany’s Daimler to produce Mercedes-Benz models in near future.

Contrary to their Chinese competitors, the above-mentioned companies are favored by drivers and fleet owners, as they offer top quality builds, good fuel economy and highly liquid when it comes to selling.