Renovating the Fleet, A Hope in the Heart of the Industry

Khodrocar – It’s been planned to scrap 200 thousand vehicle during next 3 years with foreign finance and support of national development fund and be replaced with new ones but which organization will supply it and will car owners have the ability to renovate their cars. Since last year, just a few car has been renovated.

Akbar Komeyjani, vice president of central bank has said that executing this plan needs financial resources, according to this decision it’s been decided that foreign finance will support this plan. For the first year of the project, use the resources of the National Development Fund with due consideration of legal principles and standards.

The guarantee for the repayment of foreign exchange facilities of the plan stated that the plan and budget organization has been required to provide the National Development Fund with a refund of foreign exchange facilities, while making the necessary decisions on this issue in the Board of Trustees of the Fund.

Now, only one week left to the new sanctions and does executing these plans positive? Should we think about executing retro plans while the economic pressure is increasing?

"Executing this plan is positive in an aspect because it could be a light in the darkness for Iran’s auto industry. While new sanctions will start from the beginning of August but this plan could be a way to show the capabilities in auto industry.” Bahman Eshghi, chief secretary of Tehran chamber of commerce told Khodrocar.  

"This procedure will not happen according to the announced rate but with lower production rate to keep auto industry stand. Of course, the propagation of the automotive industry is now more important than any other action, so the attention and motivation to develop this positive plan are evaluated as positive." He added.

"The only way to keep the plan going is with the support of national development fund. Right now, local auto industry doesn’t have the ability to connect with foreign producers. So if national development fund enter the plan under the government’s supervision then it could be helpful.” He said. "Foreign finance won’t allocate to this plan because sanctions will start very soon and supplying the finance is a bit illogical.”

"Running this plan would be helpful in two aspects, first it could be a chance for improving the auto industry and second road transportation economy should be executed precisely because this plan won’t meet an end with subside.” Eshghi said.

"Traffic limitations should be set alongside running this plan to force the car owners to use this plan and the government will be responsible to give facilities to this section. It is important to consider the national interest in implementing this plan, combating air pollution, reducing road depreciation, reducing fuel consumption and other factors, in order to highlight the importance of implementing this plan for all sectors.” he added.

According to the vice president of central bank, different banks are responsible to approve the projects technically and economical, the banking network is obliged to manage liquidity in terms of installments from its executives and pay it to the National Development Fund. It seems that, the final decision and result of the renovation plan and producing heavy duty vehicles should be clear soon before the execution of secondary sanctions from USA.

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani