Iran's major carmaker Iran Khodro (IKCO) and Iran Taxi Union have signed a deal to renovate the capital's aging public transportation fleet, in the latest push to combat air pollution in the city.
Early this week, IKCO agreed to renovate 10,000 cabs in Tehran's taxi fleet in the current Iranian year (started March 21), IRNA reported.
Morteza Zameni, the head of taxi union, said that although this is a positive move for the capital, a more tactful and effective solution need to be found for the old taxis.
“The number of dilapidated taxis will exceed 27,000 in the capital and 200,000 in the country within a year, if no effective measure is taken,” he added.
IKCO's Sales Manager Alireza Oskouei said the number of new vehicles earmarked for renovating the fleet can increase, depending on demand and drivers' inclination to participate in the renovation scheme.
Reportedly, the scheme’s executors have agreed with local banks to offer low interest loans to cabbies, in order to speedily implement the plan.
According to Zameni, loans worth 400 million rials ($2,666) will be offered to drivers of old taxis to motivate them to let go of their dilapidated cars.
Regulations and details are to be announced by the officials.
The taxi renovation scheme, dubbed “Nosazi”, was announced by the government in collaboration with local banks and carmakers in 2016. The scheme is in line with efforts to reduce the number of old taxis that add to the deteriorating air pollution in the metropolis.
To become eligible, cabbies were required to register their clunkers on the website Nosazi.org. After enrollment, each driver had to send the old car to the scrapyard.
Initially, applicants were loaned 200 million rials ($1,333) at an interest rate of 16%. The money was to be repaid in 48 monthly installments.
After the loan amount was reduced from the total price of the new vehicle, the driver paid the balance upfront.
However, the scheme was halted due to the sudden hike in car prices over the past several months, as most drivers cannot afford to participate in the scheme. Authorities say the loan amount is to be increased.
There are some 80,000 vehicles in Tehran's taxi fleet, 17,000 of which have already outlived their usefulness and contribute to the worsening air pollution in the expanding city.