Daimler has said it had dropped plans to expand its Iran business in reaction to renewed US sanctions, which came into effect on Tuesday (7 August).
"We have ceased our already restricted activities in Iran in accordance with the applicable sanctions," Daimler told Reuters in a statement.
The news agency noted Daimler had, early in 2016, established a joint venture with Iranian vehicle manufacturer and dealer Iran Khodro to make and distribute Mercedes-Benz trucks in the country.
Daimler had planned to open a representative office in Teheran. It the statement, Daimler states that as for now, neither its car-related nor truck-related activities in Iran had been resumed, Reuters said.
Daimler added it continued to monitor political developments carefully.
German daily Stuttgarter Zeitung was first to report Daimler's retreat from Iran earlier on Tuesday, Reuters said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFrench automakers have a strong presence in Iran.
Last June, Renault insisted it would "not abandon" Iran as manufacturers struggle to understand the impact of US sanctions against Tehran.
The French automaker appeared to be moving in a different direction from fellow manufacturer PSA which said then it has started the suspension of its joint venture activities in Iran following the re-imposition of sanctions on the country by the US.