Iran Khodro Powertrain Company (IPCO) has completed the design of the first three-cylinder engine that will begin mass production by the end of the current Iranian year (March 20, 2023).
"The EF7 Plus engine project has been developed and is procuring parts to start mass production," IPCO’s CEO Mehdi Rajab-Ali was quoted as saying by Donyaye Khodro.
"The development stages of this engine family are underway and we hope that by the end of the first half of the current fiscal year, we will be able to receive the parts, the designs of which have been provided to manufacturers and entered the parts approval process. We anticipate that by the end of the year, the first engine of the three-cylinder engine family will enter the production line,” he added.
Iran Khodro’s (IKCO) EF engines are a family of four-cylinder engines. The EF7 series are designed jointly by Iran Khodro Powertrain Company and F.E.V GmbH of Germany. Other models will be designed by IPCO itself.
IPCO is the powertrain design and production company of IKCO.
"Part of the comprehensive plan for the development of electrical and electronic units, related to ECU [Electronic Control Unit] and engine application software, is being implemented at IPCO and this plan will come on stream in the first half of this year," he said, stressing that the development of third-generation hybrid vehicles in IPCO is one of the ongoing projects.
"By mass producing low-consumption engines, we can reduce fuel consumption by 2 million liters per year,” the deputy head of Research, Design and Product Development Department of Iran Khodro said.
Mohsen Rezaei-Manesh added that the average fuel consumption of IKCO's product portfolio will be reduced as per the company’s engine development roadmap.
"In five stages, the fuel consumption of Iran Khodro's products with new engines, modern technologies and electrification will match those of modern cars," he said, while pointing out that Iran Khodro’s propulsion projects will be beneficial to the country's economy in terms of energy consumption.
The three-cylinder direct-injection engine is a crucial project of Iran Khodro Industrial Group.
The engine has a direct gasoline injection system in its combustion chamber and a turbocharged set, capable of producing a maximum power of 148 hp, a maximum torque of 240 Nm and the Euro 6 pollution level of the 3F3H.
The main parts of the engine, including the body, the bed, the sprocket and spark plug, are shared with the rest of the engine family and will be produced in the domestic and foreign suppliers’ chain.
Privatization of Two Automakers
Minister of Industries, Mining and Trade Reza Fatemi-Amin said the privatization of SAIPA and IKCO are in the final stage.
"The evaluation of the market value of SAIPA and IKCO is underway since the fiscal 2021-22, but as the properties and assets of these two companies are scattered throughout the country, the valuation process has been slow," Fatemi-Amin said on the sidelines of the Iran-Russia Trade Conference on the latest status of their transfer to the private sector.
According to the SAIPA Automotive Group, 42% of SAIPA’s shares held by its subsidiaries are ready for sale.
As the initial pricing was done three months ago and in the last month of the previous fiscal year (Feb. 20-March 20, 2022), currently, 500 judiciary experts are appraising SAIPA's properties and 300 experts are assessing IKCO’s assets for privatization.
The minister said Iran Khodro’s shares will be transferred after SAIPA’s.
Referring to the timing of the full privatization of the two companies, Fatemi-Amin said, "At present, it is not possible to give a precise date for its completion, but the work is in the final stage."
Despite these statements, parliamentarians and automotive experts emphasize that the problem of carmakers pertains more to managerial aspects than ownership.
A majority of the shares of the two automakers have already been privatized but, in practice, the companies continue to operate as government entities.
In other words, the ownership of these automakers’ shares has moved from the government to state-affiliated institutions and organizations, but the government continues to set the production target and appoints managers for the two companies.
Such a trend has caused the industry to always face the censure of experts and the dissatisfaction of customers.
After officials were compelled to admit that the automotive industry is inefficient, they agreed to lift the ban on car imports. But as long as the key industry’s policies and management are not overhauled, there’s no hope for its reformation and prosperity.
