Sweden’s Scania has signed an agreement in principle with the Iranian province of Isfahan and the investment company Shahr-e Atiyeh for the delivery of 1,350 buses for public transport in Isfahan and four other Iranian cities.
The first buses will go into service at the end of the year.
Two memoranda of understanding were signed in Tehran in the presence of the Swedish Prime Minister, Stefan Löfven and the Swedish Minister for EU Affairs and Trade, Ann Linde, by Henrik Henriksson, president and CEO of Scania, Hamid Akbari Rad, director of Scania’s Iranian partner Oghab Afshan, the Governor of Isfahan and the President of Shahr-e Atiyeh.
Iran continues to be a key market for Scania.
Mammut, Scania’s truck partner and distributor since 2008, assemble, sells and services Scania trucks from CKD (Complete Knocked Down) parts from Sweden or Brazil. Mammut employs 520 people in its Scania operations. Last year 991 trucks were sold to Iran from Scania, with a market share of 37 percent.
Oghab has been Scania’s bus partner and distributor since 2000. It buys Scania chassis on which it builds both city busses and coaches. Oghab employs close to 1,100 people in its Scania operations. The current market share is 65 percent for city busses and coaches combined. In 2016, 792 buses were sold to Iran from Scania placing Iran on Scania’s top ten markets for buses globally.