Major local carmaker Iran Khodro (IKCO), in collaboration with Iran Taxi Union, plans to replace 30,000 dilapidated taxis with Euro 4 and 5 CNG-hybrid vehicles by the end of the current fiscal year (March 2022).
Alireza Oskoui, IKCO’s sales manager, said the scheme features two sedan models, Samand EF7 and Peugeot 405, the automaker’s website Ikcopress.ir reported.
“The whole renewal process takes applicants less than a month. Owners of dilapidated taxis file an application with Iran Taxi Union. After identity verification, drivers are required to make a down payment. The invoice and license plate number of the new vehicle are issued and applicants are asked to complete their payments based on the price of the selected car model,” he said.
Oskoui noted that new cars will be ready for delivery 48 hours after the drivers dispatch their old vehicles to scrapyards.
“Five thousand vehicles have so far been produced for the renovation scheme. ITU began registration for the scheme in late May and since then, it has received 600 applications. As soon as the documents are finalized, the delivery process will begin,” he added.
The scheme is aimed at curbing the worrying air pollution in Iranian metropolises while reducing gasoline consumption.
Morteza Zameni, the head of ITU, said the sustainability of efforts strongly depends on vehicle prices, state loans and the automaker’s output.
According to Zameni, 192,000 dilapidated vehicles are operating in the country’s big cities.
The official said municipalities will loan 500 million rials ($2,000) to help the cabbies renew their taxis.
CNG Conversion
To streamline the public transport system, the National Iranian Oil Refining and Distribution Company is conducting a similar conversion plan.
According to Hamid Qasemi, the head of NIORDC’s CNG Department, the scheme is being subsidized by the government.
“The total cost of converting gasoline-powered cars into CNG-hybrid is around 120 million rials [$500], of which 90 million rials [$375] are provided by the government and applicants are only required to pay one-fourth of the cost,” he added.
Qasemi emphasized that the scheme only covers vehicles operating as taxis and commercial pickups, which have high fuel consumption.
“The Interior Ministry and Tehran Taxi Organization have a complete list of cars certified for public transport activity,” he said.
To qualify for the scheme, owners of private taxis should undergo an eligibility check by relevant authorities. Then they are required to register with the ministry’s website, make their share of payment and wait in the conversion queue.
Qasemi noted that NIORDC is also ready to implement the same plan for 200,000 school service and online ride-hailing cars around the country.
The scheme is part of a larger plan launched late May by NIORDC for the conversion of 1.4 million gasoline-powered public vehicles into CNG-hybrids in a phased manner.
The plan is currently underway nationwide, offering conversion services to drivers of taxis and public vehicles in the first phase.
Based on the latest data released by the plan’s organizers, over 54,000 public transport vehicles have so far undergone the conversion process.
Based on the data, 128,000 car owners have applied for the conversion and the eligibility of 70,500 has been confirmed. Officials expect around 700,000 applications in the first phase of the scheme.
Qasemi had earlier said the plan is expected to conclude in 14 months, curb gasoline consumption by 12 million liters and add the same amount to the CNG consumption rate.
He noted that the Ministry of Industries, Mining and Trade has set up over 400 conversion centers in 25 provincial centers to help implement the scheme. He called on car owners to only visit authorized centers for a guaranteed and standardized result.
“The scheme is estimated to require a budget of $570 million, which is being supplied through savings made from the reduction of gasoline consumption by raising fuel price and setting a quota. Two local banks are helping NIORDC accomplish the task,” he said.
“The current domestic capacity of CNG tank production is over 700,000 per annum.”
Qasemi stressed that by maximizing local capacity for the production of CNG tanks, the figure will reach 900,000 and the scheme will most probably be implemented as scheduled.
