Economy, Auto

SAIPA Diesel Seeking Foreign Partnership to Expand Production

Bank credits and financial incentives may be one way to get rid of the old and dilapidated heavy vehicles.Bank credits and financial incentives may be one way to get rid of the old and dilapidated heavy vehicles.

A subsidiary of SAIPA which produces heavy and light vehicles is set to expand its market share via deals with foreign firms and offering state-backed financial incentives to truck drivers.

The CEO of SAIPA Diesel said the company is negotiating with foreign partners to expand its production base, SAIPA News, the company’s official news outlet reported on May 30.

Rasul Mohammad Sadeqi said, “Negotiations between SAIPA and its foreign partners are going on.”

He named Volvo, Renault, Dongfeng and Foton as some of the firms that SAIPA is trying to work with to start production of heavy vehicles.

 Replacing Aging Trucks

It should be mentioned that governments have long strived to replace old and dilapidated vehicles in its cargo truck fleet to curb unusually high fuel consumption and help contain the worsening air pollution.

Based on a trilateral agreement signed in January by the Road Maintenance and Transportation Organization, (affiliated to the Roads and Urban Development Ministry), Iranian Fuel Conservation Company and Mammut Group (manufacturers of special trailers for the transportation industry), 5,000 old trucks will be replaced with new vehicles.

The trucks will be financed via leasing, with 80% of the costs covered by credit provided by the government.

SAIPA Diesel is also endeavoring to sign an agreement with the Roads Ministry and its affiliated organizations similar to the Mammut deal.

Considering that SAIPA is partially state-owned, such a deal should not be a problem for the company.

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