Saipa Diesel Co. and Foton – Mercedes-Benz’s maybe and Cummins JV partner in China - are close to an agreement that will see production of a Chinese light truck in Iran.
The six-ton Foton product is currently under test at Saipa’s Iranian facility and assembly is likely to start during the next Iranian calendar year (starting March 21, 2007).
Iran’s truck market has been stagnating over the past few months, and Saipa - which has a strong relationship with both Volvo and CNHTC - hopes that offering a cheap - $18,500 / €14,415 / £9,709 will bump start things. There is a need to renew the Iranian truck parc – for both economic and environmental reasons – and the 108 bhp Euro II-rated Foton is likely to be a valuable addition to the Saipa range on both fronts. Moreover, it offers an exportable product likely to gain acceptance in both the MENA and Central Asian markets.