Germany’s Mercedes-Benz Trucks recently signed a contract with Tehran-based automaker Iran Khodro, laying the foundation for resuming distribution of its trucks in Iran, said a report.

The deal between Iran Khodro and Mercedes-Benz Trucks includes creating a joint company that provides sales and after-sale services in Iran, added the Iran Daily News report, quoting Reuters.

A second deal would be also signed next month to create a joint venture in Iran for production of heavy vehicles including Actros trucks, it said.

French PSA – the maker of Peugeots and Citroens – and rival Renault have pushed hard into Iran since its 2015 deal with world powers that saw international sanctions lifted in return for modification on Tehran’s nuclear activities, added the report.