impact of US sanctions on Iran trucking industry

Following the unilateral withdrawal of the US government from the JCPOA agreement and the return of various economic sanctions against Iran’s economic structure, the Iranian truck market also faced many problems. The truck industry in Iran, which is generally dependent on Western, Chinese and to some extent Russian partners, saw major players quickly leaves the market.

خط تولید کشنده ولوو اف اچ 500
volvo truck assembly line in Iran

truck assembly in Iran

There is no trace of the sales plan of companies such as Daimler (Mercedes-Benz), Volvo, Scania and Iveco, which had production lines in Iran. as well as Russian companies and the former Soviet republics that had set up assembly lines in Iran. As these companies also depend on European brands in supplying their main parts such as engines and gearboxes.

In other hand, only Chinese companies are that the Iranian market can buy new trucks from they, brands such as Photon (Iran Khodrodiesel) and Citrak (Mammoth Diesel) have the most activity in the affected Iranian market. But the sharp decline in the value of the rial against foreign currencies has led to prices in the market that many buyers are not able to access.

It should be noted that simultaneously with the economic sanctions imposed on Iran, the Iranian government has also adopted a policy of banning the import of trucks due to the lack of foreign exchange resources. In such circumstances, domestic production or the import of parts in the form of CKD are two options that the Iranian truck market can count on.

کامیون ماک
Old MACK trucks in Iran

In the domestic production sector, we can refer to programs such as the production of Iran Khodro diesel 2630 truck. However, the low production and the lack of transparency on the company programs, we will face with Doubt about success of this plans.

In the CKD sector, however, we see more mobility and at the same time sluggishness from the production lines in Iran. It seems that CKD production with the cooperation of Chinese companies also suffers from problems such as providing foreign exchange resources or lack of full cooperation of Chinese brands.

In such circumstances, the Ministry of Roads (Roads and Transportation Organization) proposed a plan to use second-hand trucks under 3 years of age from markets such as Europe, Japan and South Korea to modernize trucks, mainly over 40 years old. But this plan was recently in order registration stage, and recently it has been able to provide a permit for the entry of 2,000 trucks.

In these circumstances, whispers of a 25-year economic plan between Iran and China have been raised. A plan that the strengthening of Iran’s cargo fleet has not been omitted in its description.

chinese trucks in Iran

Given that truck production in China covers all weight groups from lightweight duty trucks to duty weight trucks, if such a programs leads to a strong presence of Chinese brands in the Iranian market, it can be hoped that a number of prominent brands in this country in To be produced in Iran as well. Companies such as foton, Faw, Dongfeng, Dayon, CNHTC, Jac, Cheng Long, BAIC and are some of the cases that can be seen in the market.

The general concern of the market here is the quality of goods produced in China. It should be noted that major Chinese brands have closely cooperation with Western brands such as MAN, Iveco and Daimler for many decades. and today, with relying on such capabilities, they have even achieved production independence. As in the digital technology sector, prominent companies such as Huawei support the industry, engine and gearbox brands such as Weichai and Fast have a Strong position, and China’s truck industry has reached a stage where it produces Level 3 autonomous or all-electric trucks.

Although today it can be hoped that the main brands in the Chinese market have the ability to produce quality trucks, but still in terms of appearance and interior design, they suffer from weaknesses stemming from Eastern culture. The general culture of the eastern regions, such as China, Japan, and the Korean Peninsula, prefers a kind of fantasy and abstract design. but iranian drivers prefer ergonomic and realistic designs of Western trucks.

Sections such as the curvature of the dashboard, the height of the engine tunnel, the side storages, the handbrake in dashboard and the pleasant and acceptable face are things that must be considered in this section.

In the end, we must realize the communist ideology that governs this country, and in the campaign of disbelief in a free economic and political system, we may face the collapse of the former Soviet Union in the future, in such a situation and at a time when Chinese technology is rooted in our country. We will be confused. The point of hope for China, however, is change. The Chinese have proved that they will change as the foundations of governance shake, even if deviating from the pillars of communal ideals is the result of this change. The desire to Continuity in China should not be underestimated.

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