Economy, Auto

Japan Urged to Help Produce Green Cars

Japan Urged to Help Produce Green Cars
Japan Urged to Help Produce Green Cars

Iran plans to provide further subsidies to produce environmentally friendly cars such as hybrid and electric vehicles, and has urged Japanese carmakers to consider building related plants in the country.

In an interview with Kyodo News on Thursday, Vice President Massoumeh Ebtekar who doubles as head of Iran’s Department of Environment, said eco-friendly cars have a “great future in Iran”, and hoped that Japanese automakers will produce vehicles in Iran for export as well.

"Iran can become an export hub for the whole region," she said, stressing its access to open seas and land to export to regional countries such as Turkey or even Europe and Africa.

Iran's economic prospects have brightened after it reached a deal with six major countries to lift economic sanctions in return for curbing its civilian nuclear energy program.

The sanctions imposed by the United States, Japan and Europe had “very detrimental effects on different aspects of life in Iran”, and impeded the country’s access to new environmental technology, Ebtekar said.

“After the sanctions, we have to look for green technologies to manage air pollution, water pollution and waste management. We are looking forward to a lot of investment in green technologies."

To encourage sales of environmentally friendly cars, Ebtekar indicated that Iran may introduce subsidies for the purchases of hybrid cars and create areas in major city centers where only allow eco-cars are allowed.

The government has already made efforts to promote greener vehicles, like their offer of zero percent import duties on hybrid cars. However, due to the nature of the Iranian automotive market, the saving has not been passed onto the consumer, which hampered sales.