Private Sector Welcomes Vehicle Renovation Plan

Khodrocar – The year 2003 was the first time that the worn out vehicles scrappage scheme was ratified and a code was created for it in the government. However, since then, the government always have had lack of budget and again, new government ratified a new letter in the year 2008. This plan also didn’t work due to the lack of budget.

Every year, about 200 to 300 thousand worn out vehicle should be scrapped but the lack of government support and budget was the reason that this plan didn’t implemented.

Another Method for Scrapping Worn Out Imported Cars

In the early 2011, government ratified an approval that noting that each vehicle import company must have a scrappage certificate and it got more serious in 2014. The procedure was being implemented until recent years, when the government suddenly exempted the domestic vehicle companies from scrapping their cars and announced that the importers must present 6 scrappage certificates per car. In the meantime, SABTARESH website has been shut down and it led to the reduce of car imports. Today the car import is totally banned and it means that the importers will face new problems about scrappage next year. The share of car importers was about 140,000 units per year.

However, the government succeeded in some cases and one of them was the renovation of worn out taxis which was implemented with the cooperation of private sector. In addition, last year, a new plan started: Renovation of 202 thousand worn out heavy duty vehicles. A plan which is suspended.

Amir Seifizadeh, automotive and scrappage experts tells Khodrocar regarding the issue: "Government didn’t take the renovation plan serious while the related authorities are trying to implement this plan. We also have problems with heavy duty vehicles. They are hard to supply considering the current economic situation.”

He explains: "Scrappage scheme needs cultural background and it is a part of economy.”

According to this expert, prohibition of car imports will have serious consequences for car scrappage.

Khodrocar – According to Iran’s Scrappage Forum, there are currently more than 20,000 people directly and about 70,000 indirectly earn money from this section. Also, 2 million and 500 thousand scrappage certificates are waiting and each day, government’s decision makes the situation worse.

Now, the scrappage plans are going to start a new life. If it happens, 90 thousand jobs will be resuscitated and this sector will become alive again.


Khodrocar Translator: Maziyar Jafarieh