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Subsidized Tires for Iranian Truckers

The online sale of tires for heavy-duty vehicles at factory prices was launched in Qazvin Province since June 2. 

As per a scheme introduced by the Industries Ministry and implemented with the collaboration of interior and roads ministries, commercial vehicle drivers will be able to purchase tires at factory prices, via the website Utcms.ir, IRNA reported.

“All the drivers need to do is to submit their vehicle's specifics and ID number on the online platform,” Peiman Pirmoradi, an official with Qazvin Governorate, said.

“The number of tires that drivers will be eligible to receive depends on criteria such as the average travel distance per month, the condition of roads taken by them and the type of cargo they handle,” he added.

Pirmoradi noted that the scheme will be implemented in the province for a month, then it will be executed nationwide if it work out well.

The move is aimed at tackling volatility in the tire market, thwart dealers' attempts to hike prices and provide drivers of commercial vehicles with tires at lower than market prices.

Several local companies, including Kavir Tire and Yazd Tire, used to produce tires for trucks and cars in large volumes. Their production, together with imports, easily met domestic demand. 

However, after US President Donald Trump reneged on Iran’s nuclear accord and reimposed sanctions against Tehran last summer, many foreign suppliers of raw materials to tire manufacturers suspended collaboration with Iranian firms.

With the shortage in raw materials, tire production declined significantly. This has caused shortages and turmoil in the domestic tire market.

Although there is no credible data on demand for heavy-duty tires in Iran, according to Mohammad Reza Bajestani, an official with the Industries Ministry, local truckers annually need an estimated 350,000 tons of tires.

According to the latest data, Iran’s cargo truck fleet has 359,700 active heavy-duty vehicles.