The ministry of industry, mine, and trade sent a proposal to the government to be approved based on which the manufacturers and owners of electric and hybrid cars would be given incentives, reported IRNA.
The administration is planning to reduce pollution, especially in big cities, and has approved a 0% tariff for imported electric and hybrid cars, said Mohammadreza Nematzadeh, the minister for industry, mine, and trade on Thursday.
The minister stressed that the elimination of tariffs was not enough and that was why incentives such as loans to producers and consumers as well as reduction in municipality annual car charges have been offered.
Currently, the country is investing to domestically produce lithium batteries, as the essential element of electric vehicles (EVs) as the EVs are expected to be mass produced in the next Iranian calendar year (to start March 21, 2015).
In recent years, Iran has moved towards alternatives such as EVs, hybrids and natural gas vehicles, partially in response to economic sanctions, and also in an effort to reduce air pollution.
Thegovernment recently scrapped import tax on all electric and hybrid cars. It also banned the import of cars with over 2500 CC engines. The move is aimed at boosting domestic production and making the auto industry competitive. Many countries provide incentives for purchasing zero-emission vehicles.
