Industry Minister Mohmmad Reza Nematzadeh says vehicles will be produced with Euro 5 emissions standards from April.
Nematzadeh told a conference that industries that fail to keep abreast of innovation and high-tech are doomed, Mehr News reported on Monday.
“Some Iranian companies, however, are updating and improving [to meet higher standards],” he said without saying which local carmaker had upgraded engine technology in recent years.
He did say that "new car engines will be unveiled next week."
Nematzadeh said the Euro 5 engines will be produced by national automakers in the coming year.
"New contracts signed with foreign automakers also are aimed at manufacturing vehicles that comply with Euro 5 and 6 standards.”
The minister pointed to agreements with two European research and design institutions for modern engines. “Use of low-consumption 3-cylinder engines with power of up to 160 hp has been incorporated in the contracts.
The two main auto companies Iran Khodro (IKCO) and SAIPA have reportedly signed agreements with a German and a hitherto unnamed Austrian company .
Nematzadeh pointed to collaboration between Iran's car industry and the top foreign diesel truck makers saying “production of buses and trucks with Euro 5 or Euro 6 standards in addition to diesel particulate filter (DPF) has started and will be available soon.”
European emission standards define the acceptable limits for exhaust emissions of new vehicles sold in EU and EEA member states. The emission standards are defined in a series of European Union directives staging the progressive introduction of increasingly stringent standards.
Iran began using the emissions standard as a de facto benchmark in the early 2000, however, the country has for the past five years lagged behind the latest European standards due to the international economic sanctions.
The stages are typically referred to as Euro 1, Euro 2, Euro 3, Euro 4, Euro 5 and Euro 6 for light duty vehicle standards.
The Euro 5 emissions standard was introduced in 2009 for light passenger vehicles. Euro 6 was introduced in 2014 and has become the latest stringent standard used by all manufacturers wanting to sell in the EU.
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