Economy, Domestic Economy

Iran's Truck Fleet Renewal on Track

Iran's Truck Fleet Renewal on Track
Iran's Truck Fleet Renewal on Track

Mammut Industrial Group has replaced 350 aging cargo trucks with new ones over the past month, as part of an agreement to renovate a total of 5,000 trucks.

“This indicates that Mammut has been able to fulfill its obligations,” deputy minister of roads and urban development, Davoud Keshavarzian, was quoted as saying by the government’s official news agency

A trilateral contract was signed in January by the Road Maintenance and Transportation Organization (affiliated with the Roads Ministry); Iranian Fuel Conservation Company and Mammut Industrial Group to renew the domestic truck fleet with vehicles jointly produced with Swedish truckmaker SCANIA.

The trucks are being financed via leasing, with 80% of the costs covered by facilities provided by the government.

The deal with Mammut is part of an agreement between the roads and oil ministries to replace a total of 65,000 trucks within five years.

The old age of Iran’s truck fleet has been blamed for excessive fuel consumption and air pollution.

There are 120,000-130,000 vehicles in Iran’s cargo truck fleet averaging over 25 years, according to Keshavarzian, who is also the chairman of RMTO.

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