German trucks manufacturer Daimler is on track to quickly resume its business activities in Iran, with a plan to open a representative office in the country within the first quarter of 2016.

Wolfgang Bernhard, board member of Daimler, said high pent-up demand resulting in rising truck sales in the country. “…There is a huge demand for commercial vehicles, especially trucks. We plan to quickly resume our business activities in the market there,” he said in a statement.

The firm, whose divisions include Mercedes-Benz Cars, Daimler Trucks, and Mercedes-Benz Vans, among others, had earlier signed a letter of intent (LoI) with Iran Khodro Diesel (IKD) and the Dubai-based Mammut Group for the local production of Mercedes-Benz trucks and powertrain components. The LoI also includes a provision for the establishment of a sales company for Mercedes-Benz trucks and components.

Other plans include the return of Daimler as a shareholder in the former engine joint venture Iranian Diesel Manufacturing Company (Idem).

Daimler envisages that it could begin supplying the Iranian market with its first Mercedes-Benz Actros and Axor trucks in the form of completely knocked down (CKD) kits before the end of 2016. Daimler had also signed a distribution agreement with Mayan, part of the Mammut Group, for Mitsubishi Fuso to target the light-duty truck segment.