Daimler AG's truck business is returning to Iran after a landmark deal to curb Tehran's nuclear activities led to the lifting of economic sanctions.

The German company announced Monday that it had signed letters of intent with local partners Iran Khodro Diesel and Mammut Group.

Daimler Trucks head Wolfgang Bernhard said that "there is a huge demand for commercial vehicles in Iran" and that "we plan to quickly resume our business activities in the market there."

Plans include a joint venture for local production of trucks under Daimler's Mercedes-Benz brand, cooperation on engine production, and establishment of a sales arm.

Daimler's business in Iran started in 1953 and sold up to 10,000 vehicles a year there, but was interrupted from 2010 to 2016 by the sanctions.