President Rouhani: To Unlock the Renovation of Worn Out Vehicles

Khodrocar – The fact that Iran is filled with worn out vehicles is undeniable. Weather it is because of domestically produced low quality cars or long term use of vehicles, is now irrelevant to the topic. What President Rouhani said on TV a couple of days ago seem impossible to work out in three days, considering the production volume of the country’s automobile industry and the difficulties it is now facing.

Rouhani said that the government is serious toward worn out vehicles and that there are more than 230 thousand worn out commercial trucks out there that hopefully are going to be replaced with new models in three years ,using facilities and help of commercial vehicle making companies.

The number of worn out vehicles in the country is announced 1.35 million units with another 200 thousand adding to it every year. That is while the annual vehicle production of the country’s automobile industry is about 1.2 million units. So how is that possible to replace all these vehicles in such short period of time?

"Considering the increment in the volume production of vehicles in the country to around 1.5-1.6 million units a year, it is possible to replace the worn out vehicles with domestically produced vehicles. But because the vehicle production volume increased back in the 2000s, we will face the need to scrap around 1 million units of vehicle every year in 2025, when those cars reach and exceed their optimum age.” Said Farbod Zave, An automobile industry expert. 

"The problem is that there are no fines or punishments in the politics of commercial of passenger vehicles. Instead of giving valuable loans to the owner of worn out cars, the insurance costs and the taxes must be related to the age of the vehicle right from the beginning and that Is how the owner would try to replace his car with a new one before reaching or exceeding his vehicle’s optimum age.” Added Zave

"It was not clear what the president meant by referring to 70 thousand commercial vehicles to be produced annually to replaced worn outs but if the question regards the possibility of the matter, then yes, it is possible to replace 230 thousand worn out commercial vehicles in three years if the financial sources are provided, Yet just on the paper. Considering the background and  the weakness of management in the industry, producing 70 thousand commercial vehicles in a year is a big number that in just three years it might be done up to only 30 percent. This replacement is a huge project and it needs professional management along with huge financial sources.” Said Zaveh regarding the 70 thousand unit annual production of commercial vehicles in the country.

"To resolve the problem one must look for some proper punishment in the policies, to look over the shoulder of fuel price and not to forget transportation companies. The loan and all the facilities must go to the transportation companies that can get the maximum out of commercial vehicles. The current method all the investments go to the owners and nobody has any idea about their true work performances. Such method was used several times in other previous governments yet the problem still exists.” Said Zave to emphasize on the importance of a using a proper method to resolve problems of the worn out vehicles.

Khodrocar Journalist and Translator: Mostafa Anisi