TEHRAN – Iranian Saipa Diesel Company and Chinese Dongfeng Motor Corporation signed a commercial and industrial cooperation MOU in Tehran with Majlis (parliament) members and other important figures in attendance.

Moj news agency quoted Saipa Diesel director saying in the ceremony that unfortunately procuring Chinese trucks in the past was done without any official framework, but from now on purchasing them will be done according to our regulations and wishes.
Dr. Ali Malek said that based on Saipa Diesel’s experience in working with well-known brands of the world including Volvo and Renault, we would like to localize and assemble Chinese trucks in Iran, and improve them by reaching European standards.
Saipa Diesel began operations in 1963 under an exclusive agreement with Mack Trucks to assemble their trucks and various types of trailers. By 1978, the factory was producing a total of 7,512 units.
During the years 1979-1984, the company began assembling a wider variety of vehicles in both cargo and passenger sectors. In 1984, having carried out studies on restarting the truck production line, a contract was concluded for the production of Volvo F4x2, 6x2, and 6x4 trucks.
Beginning in 2000, Saipa Diesel started introducing Volvo FH12 and NH12 trucks. Since 2001, these trucks have been equipped with Euro II & III engines, meeting the European requirements, and Saipa Diesel has captured 90 percent of the local market share.
Saipa Diesel has also taken on the responsibility of updating the Iranian truck fleets. Besides the production of heavy trucks, there was a need to fill the gap in light and medium trucks, which were mostly out-dated models. Volvo FM and Renault Midlum trucks were added to the range of the company’s products.
At present, Saipa Diesel’s annual production capacity is 20,000 units of different types of trucks and 6,000 units of various types of trailers and truck bodies.
Founded in 1969, Dongfeng Motor Corporation (DFM), formerly named Second Automobile Works Co., is one of the three giant auto makers in China. Its main businesses include passenger vehicles, commercial vehicles, engine, auto parts, components, and equipment.
As of 2007, DFM produced 1,137,000 vehicles, a sales income of 164,800,000,000 yuan, 12.94 percent market shares and 121,000 registered employees. The company ranks 20th in TOP 500 of domestic enterprises and 5th in TOP 500 of domestic manufacturers respectively