Iran Khodro is designing a hybrid electric vehicle called “Eco Cross” that will initially use gasoline and later electric power.
"K125 is the first hybrid gasoline-based and electric vehicle, although the car will enter the market as a gasoline-based model," the deputy head of Research, Design and Product Development of Iran Khodro announced, while noting that the electrification of this industrial group’s vehicles is on the agenda.
Hybrid electric vehicles (HEVs) are a combination of gasoline and electric vehicles, so they have a battery, an electric motor, a gasoline tank and an internal combustion engine.
"By mass-producing low-consumption engines, we can reduce fuel consumption by 2 million liters per year," Mohsen Rezaei-Manesh was also quoted as saying by Donyaye Khodro.
"In five stages, the fuel consumption of IKCO’s product portfolio with new engines and modern technologies and electrification will reach the specifications of modern cars," he added.
The official noted that Iran Khodro’s propulsion projects will be beneficial for Iran's economy in terms of energy consumption and import reduction.
"As short-term strategies, we have planned to replace high-consumption engines with more up-to-date engines and increase the share of CNG vehicles. And as medium-term strategies, upgrading the engines in collaboration with Iran Khodro Powertrain Company and other manufacturers was placed on the agenda," he said.
"In order to observe the mandate set by the Institute of Standards and Industrial Research of Iran, we have placed the medium-term strategy on the agenda and defined projects that can transcend the related standards. Tests carried out at reputable centers promise that we have done the right thing."
Rezaei-Manesh noted that some projects have been approved and are being implemented according to Iran Khodro’s roadmap, adding that the long-term strategy is to develop low-consumption, three-cylinder engines.
In this regard, Reza Rezaei, the vice president of the Association of Homogeneous Propulsion Industries and Component Manufacturers, said Iran’s knowledge-based component makers are ready to cooperate with Iran Khodro Industrial Group for manufacturing new and export-oriented products.
Rezaei stressed that parts makers need government support for manufacturing components more than its financial support.
"It is necessary to upgrade the machinery and production lines, and prepare the ground for revamping the automotive parts industry," he said, noting that localization would help lower the cost of their products.
Automakers Ordered to Submit Quality Enhancement Roadmap
Lawmakers have ordered Iran’s two major auto producers to submit roadmaps for enhancing the quality of their vehicles.
According to the Majlis news outlet, SAIPA Group and Iran Khodro have been given 72 hours to submit a roadmap to the parliament, in which they should elaborate on their plans for improving customers' satisfaction, as well as the quality and security of vehicles.
Rouhollah Nejabat, a lawmaker, referred to the impact of domestic vehicles on the high number of road casualties and said lawmakers made the decision during a meeting with representatives of Traffic Police, Roads Ministry, Industries Ministry, Iran Khodro Industrial Group, SAIPA Group and the National Standards Organization.
In another update, Ezzatollah Akbari, another lawmaker, called on the government to prepare the grounds for the entry of private producers and foreign companies in the automotive industry, as it would help improve the industry's competitiveness.
He also criticized carmakers for their irresponsibility and said carmakers must fulfill their commitments in contracts that uphold the interests of both sides.
Hojjatollah Firouzi, another lawmaker, also said the import of new cars could be a useful method for compelling domestic producers to improve their performance.
"The presence of foreign cars in the market would y help reduce prices and at the same time force domestic producers to improve the quality of their products," he said.
The measure follows widespread public complaints about the poor quality of domestically-produced cars.
The previous government had imposed a ban on car imports to prevent the outflow of foreign currency made scarce by US sanctions and lower oil sales in the fiscal 2018-19. However, the incumbent government has placed the import of 70,000 cars on its next year agenda.
IKCO and the second major automaker SAIPA enjoy a near monopoly in the domestic market and so far, car imports remain banned.
Iran's total auto output during the last Iranian year (ended March 20, 2022), stood at 963,179, down 2.9% year-on-year. IKCO posted a 6.7% decline in output last year, whereas the decline was 5.5% for SAIPA.
One person dies in a road accident every half hour in Iran, taking the annual death toll to 17,000, the Iranian Legal Medicine Organization announced.
The organization also said close to 30,000 people are annually embroiled in accidents.
According to Majlis Research Center, the cost of road crashes amounts to 8% of Iran’s gross domestic product. In the years ending March 2012 and March 2017, car collisions cost the economy 519 trillion rials ($2.1 billion) and 535 trillion rials ($2.17 billion) respectively.
