The Volvo/Iran story begins more than seventy years ago, in 1934, when Volvo delivered the first three trucks to Iran. From the beginning Volvo delivered low volumes of CBU* trucks but in 1972, the company RENA started with the local manufacturing of the Volvo N-model. The manufacturing was later on taken over by Zamyad in 1974. Volvo owned 30% of the Zamyad shares and had the management responsibility. Volvo was sharing technical know-how consisting of production knowledge for parts and trucks for local integration. The development of the local integration plan has been very important for the Volvo/Iran business and is one of the core activities for Volvo in Iran.
In 1984, the manufacturing of Volvo F-model started at the company Iran Kaveh. Volvo contributed significantly with investments in tools and equipment.
1986 Bonyan Diesel started to assemble Volvo engines in Tabriz. This continued until 1993. At that time Bonyan Diesel also produced engines for Volvo Penta and Zamyad.
Year 2000 a new agreement for Industrial and Commercial Cooperation was signed between Volvo Truck Corporation and Saipa Diesel (former Iran Kaveh Co). This agreement still serves as the basis for the business.