Saipa Diesel Company, originally branded Iran Kaveh, commenced its operations through an exclusive agreement with Mack Trucks assembling Mack trucks and various types of trailers. During the period of cooperation with Mack Trucks, which came to an end in 1978, Saipa Diesel succeeded to produce 7500 units of Mack Trucks. Following the stoppage of Mack Trucks production, the company managed to assemble alternative vehicles in cargo and passenger transportation section in order to utilize the current capacities, and contribute to employment. In 1984 and following the studies for establishment of a new truck production line, an agreement was concluded with Volvo Trucks for the production of Volvo F12 trucks. Concluding an agreement with Yugoslavian company of Goscha for the production of platform trailers was another significant measure taken by Saipa Diesel in the same year. These measures resulted in a high volume of sales in domestic market as well as the introduction of the products, received warmly, in foreign markets, so that the Economy & Commerce Director of the former Ministry of Industries granted Saipa Diesel a Letter of Appreciation in 1992. Parallel with the establishment and development of cooperation with one of the most renowned companies active in the field of commercial vehicles, namely Volvo Trucks, the knowledge and capabilities of the company's staff developed too, so that the designing of Budsun light trucks, aiming at diversification of the range of products as well as meeting the market demand in this section, was achieved by the company's experts and through cooperation with Renault Trucks since 1995, and, consequently, the certificate of R&D was granted to the company by Ministry of Industries in the following year. Also, in 1997, Kaveh Khodro Saipa was established with the goal of designing, supplying and manufacturing the required parts and assemblies for supporting the production lines of Saipa Diesel. Simultaneously, the organization's management processes were planned based on the requirements of quality control standards ( ISO 9002 : 1994 ) and accordingly Saipa Diesel was recognized as the first company ever to attain the afore-mentioned certificate, with the scope of manufacture and assembly of F12 trucks, as well as a Letter of Appreciation by Safety & Health Protection Committee of Central Bureau of Labor & Social Affairs. In 1998 Saipa Diesel founded Iran Kaveh Saipa in order to develop and centralize its trailers and truck bodies operations. The processes of design, manufacture and assembly of tarpaulin and platform trailers were added to the scope of the previous certificate, and, as a result, ISO 90001 : 1994 certificate was procured, through systematization of these operations, and management's commitment with regard to continual maintaining and improvement of the implemented quality control system.

In the period between 1984 to 2001 there were produced, regularly, more than 10,000 units of Volvo F12 & NL12 trucks, achieving 52% of self-sufficiency, and in 1999 the company won the Exemplary Exporting Company Prize, for the second time, granted by the President of the country. Taking into consideration the increasing number of Saipa Diesel's products, there was felt the need to acquire Rena Technical Services company, trailing behind the experience of importing and repairing of heavy trucks and agricultural machinery since 1957. Accordingly, in 2000, Saipa Diesel acquired the whole shares of Rena company, aiming at offering after-sales services to its customers. It was only in the following year that while attaining a Letter of Appreciation as the exemplary industrial company, Saipa Diesel was simultaneously ranked the first in the field of after-sales services, and was granted a Letter of Appreciation by Iran Quality Inspection & Standard Institute. The new legislation on vehicle emissions made it obligatory for the trucks running on European countries to be equipped with engines in conformity with Euro standards. As a result, the Iran's international transportation companies, failing to conform with Euro Standards, faced a serious crisis. It was then that Saipa Diesel, trailing behind half of a century of experience, as a major player in the field of commercial vehicles felt it incumbent upon itself to grapple with the problem the Iran's international transportation fleet was facing. It had to be precise and prompt. As a consequence, following the preliminary talks with Volvo Trucks, an agreement was concluded with the Swedish company for the introduction of the state-of-the-art and products to domestic market. It didn't last long before Saipa Diesel managed to equip the truck fleet of domestic international transportation companies with the new generation of Volvo trucks, namely Volvo FH12 & NH12 heavy trucks, thus overcoming the crisis. parallel with this the company implemented the strategy of developing management systems and excellence road for internalization of total quality management (TQM) within the framework of the first version of IT's strategy in 20001. In the following year the company succeeded to attain the Letter of Appreciation, and was ranked the first in the field of after-sales services, through Quality Inspection and Standard Institute for the second time. Simultaneous with this success, and in line with planned excellence road and IT's strategies, the organization's processes were re-engineered. In 2003, the following measures were taken by the company: process interaction map in the company's management systems manual were illustrated ; a wide range of activities took place for provision of the necessary infrastructure and implementation of the required integrated applicable systems within a developed Iranian ERP ; Electronic communication process, being effective in marketing, advertisement, and culture promotion developed through hardware facilities and communication network ; and ultimately the required measures for the implementation of environmental management systems were followed up, so that the company succeeded to attain ISO 14001, ISO 9001 : 2000, for the scope of manufacture and assembly of FH12 trucks, and also managed to attain the Letter of Appreciation for green economy through Industry & Mine House. Also, the Quality Inspection & Standard Institute granted Sipa Diesel a Letter of Appreciation for after-sales services, and ranked the company the first in this field.

The country's economic development during 2002 and 2003, and predictions concerning increasing commercial vehicles market demand spurred the strategic committee to adopt developing strategies, and expanding the range of products to 14 types, it created the required infrastructure for the realization of a production capacity of 25,000 units annually. Accordingly, concluding an agreement with Renault Trucks for the production of various applications of Midlum trucks, and producing up-to-date FM Volvo trucks, Saipa Diesel equipped its production workshops with the latest technology for the production of state-of-the-art European products. Also, designing flexible production lines, the company managed to materialize allocation of production share for each and every product, taking into the account the market demand. To materialize this purpose, the company acquired a part of Melli Shoe plant in order to centralize sales operations and processes. Since 2004, Saipa Diesel increased the production capacity of commercial vehicles up to 20,000 units annually in a various range ( 6-200 tons ) in cargo section, and that of commercial passenger section to 5000 units annually (17-25 seater minibuses & 29-33 seater midibuses). Parallel to above-mentioned changes and in line with planned excellence road, the organization's processes were revised, taking into account the requirements of job safety and health management. And, the regular utilization of assessing models of Nissan Plant Management System & excellence model of EFQM were placed in the company's agenda for identification of strong points and improvable fields of the organization, aiming at ensuring the success of the company for the realization of total quality management concepts. The totality of these attempts resulted in attaining OHSAS 18001 as well as Integrated Management System (IMS) certificate through integration of implemented systems, Saipa Diesel being the first company ever to achieve it in the domestic automotive; attaining Committed to Excellence certificate from National Productivity & Excelence Award; receiving the Letter of Appreciation as the exemplery industrial company for the second time; and attaining a Letter of Appreciation, and ranking the first for after-sale services through Quality Inspection & Standard Institute, were all among the company's achievments in 2004. In 2005, in line with materialization of the company's vision, based on gaining the maximum domestic market share of cargo commercial vehicle section, and to meet the demand of a part of the market for relatively cheaper vehicles, the company adopted the strategy of commercial cooperation with Chinese companies. As a result, following intensive studies on core capabilities of potential Chinese partners, two Chinese companies of Foton ( for the ligh range )and Dong Feng ( for the heavy range ) were accordingly selected as Saipa Diesel's new partners. Simultaneously, the company's commercial cooperation with its main partner, namely Volvo Trucks, developed, which resulted in the introduction of the new generation products of Volvo FM12 & FH16, thus promoting the diversification of Saipa Diesel's products to 21 types with various applications. At the same time, the management's support for the executing improvement plans resulting from self-assessments, and the efforts of all the staff for strengthening the company's capabilities, and accordingly the growth trends in all fields contributed to the promotion of Saipa Diesel's Excellence level and attainment of Recognized for Excellence certificate from National Productivity & Excellence Award. Winning Saipa Group's Excellence Prize, Procurement of National Production Seminar Prize through House of Industry & Mine, ranking the first and receiving a Letter of Appreciation for after-sale services through Quality Inspection & Standard Institute for the fifth consecutive year were all among the company's achievements in 2005.

Continuous participation in foreign markets, and paying due attention to offering after-sales services in 2006 contributed to the recognition of the company as exemplary exporting company for the third time and attaining a special Letter of Appreciation for this achievement through Iran's Development and Renovation Organization (IDRO). Also, the company once more ranked the first and won a Letter of Appreciation for after-sale services through Quality Inspection & Standard Institute. In 2007, promotion of old Volvo Products as well as replacement of old Dong Feng trucks by the new generation products, namely T375 model accounted for the diversification of Saipa Diesel's products to reach to 29 types. Also, the company managed to renew its management systems certificates ( ISO 9001, ISO 14001, and OHSAS 18001 ), and, simultaneously, expand their scope to production and assembly of Volvo and Renault trucks through taking necessary measures for maintaining implemented management systems including executing systematic self-assessment, internal audits, regular monitoring of criteria, and continual improvement of processes. Today, enjoying a wide range of products in light, medium and heavy section with 35 models, Saipa Diesel is honored to be capable of meeting the customers' demand and satisfaction. Recognition of the company as ranking the first in the field of after-sale services by Quality Inspection & Standard Institute for 7 consecutive years, ranking the second among the companies affiliated to Iran's Development & Renovation Organization (IDRO), and attaining 80% of the whole export volume of Saipa Group of companies in 2008 have all contributed to a promising future for Saipa Diesel in domestic and international markets. Today, the company also has taken a firm step for the renovation of passenger transportation fleet through the production of state-of-the-art minibuses and midibuses.