With sanctions lifted, German truck makers are looking to take back market share from China.
Daimler to regain pole position Image: Daimler AG |
After a six-year absence, Daimler AG is looking to regain its position as one of the leading truckmakers in Iran, but will have to best its Chinese rivals to do so.
Sanctions were levied on Iran in 2010 over concerns about the country's nuclear research program, but have since been lifted after its government agreed to various demands for transparency.
In the absence of German companies, Chinese firms like Dongfeng Motor Group quickly rushed in to fill the void. Before the sanctions, Daimler was producing around 10,000 trucks in the market and expects demand could rival that of Turkey at 40,000 units per year.
As growth slows in China and other emerging markets, the German marque is looking to diversify its investments and look for growth in increasingly remote regions. Layoffs are already being planned at its Brazil plant, while the US truck market continues to post weak growth figures.
Daimler is also eyeing Africa for growth, where again it will face fierce competition from Chinese companies keen to tap into a booming market.