Rouhani’s Government Puts the Breaks on Production of Fuel-Intensive Cars

EghtesadOnline: Following the introduction of more rigorous automotive standards that have brought the matter of fuel-efficiency to the fore, Iranian authorities have given the axe to several car models which for long have been singled out for being fuel intensive.

News ID: ۷۸۳۴۶۰

29 July 2018

As per a recently introduced directive by Institute of Standards and Industrial Research of Iran, production of eight substandard models has been banned, ISNA reported.

ISIRI had provided carmakers with a time frame to gradually halt production of the eight models. With the institute's earlier deadline for the halt coming and passing, many were concerned that ISIRI has given up on its plans to put an end to the production of shoddy vehicles.

The institute eventually released the names of vehicles which face the production ban. In an exclusive report published on Tuesday, ISNA disclosed the names of eight vehicles that have failed to comply with the standards, according to Financial Tribune.

Car manufacturers were compelled by the ISIRI to enforce 63 standards by June 22 or face production suspension.

In recent years, ISIRI has pushed for the implementation of phased upgrades to Iran's automotive standards known as the Islamic Republic Car Assessment Program (IRCAP).

The system is scheduled to come into full force by January 2019 and will include new regulations with the total number of automotive standards reaching 85.

>The Unlucky Eight

The published list includes vehicles from Iran Khodro, Modiran Vehicle Manufacturing Company (MVM), Brilliance Industrial Group, the industrial vehicle manufacturer Zamyad, Kerman Khodro and Diar Khodro.

Iran Khodro's SUV HAIMA S7 is barred from mass production due to high fuel consumption. The Chinese SUV had been assembled in Iran since 2015.

Moreover, Kerman Khodro and Diar Khodro will have to cease the manufacture of two models each.

Private Iranian automotive firm Kerman Khodro has to pull the plug on the production of its SUV model JAC S5 with manual transmission and the mini sedan Lifan 820 with automatic gearbox. Both vehicles are made through collaborations with Chinese carmakers.

JAC S5 had been available on country's auto market for a couple of years and is popular with Iranian motorists. Lifan 820's production began in May 2016.

Earlier in 2017, Haima S7 and JAC S5 were barred from registration by the police but seemingly the production had continued.

Small automaker Diar Khodro is to halt the manufacture of gasoline-powered pickup truck Wingle 5 with manual transmission and the hatchback model BAIC BJ40L.

MVM, which represents the Chinese Chery's operations in Iran, will have to stop the production of the SUV model MVM X33S, a local variant of Chery Tiggo 3 which had been present in the local market since 2016.

Local carmaker Brilliance Industrial Group is no longer allowed to manufacture the gasoline-powered London Taxi TX4 with automatic gearbox. The carmaker's production plant is located in Aras Free Zone in the northwestern province of East Azarbaijan.

Local automotive company Zamyad will also have to stop manufacturing the mini truck Z24PA.

>3 Cars Obtain Clearance

Three new models have secured the necessary permissions from the ISIRI to enter Iran's market.

The three models, namely the Citroen C3, a pickup manufactured by AMICO and a car produced by the Chinese FAW. There are no details available about the latter two models yet.

ISIRI seems to be resolved to take firm steps to rid Iran's auto market of low-quality vehicles which endanger the lives of the people, flagrantly burn natural resources and spew poison into the air.

While some observers had speculated that the institution would falter in its steps toward upgrading Iran's automotive standards following the US's withdrawal from the historic Iran nuclear deal and the ensuing sanctions, the ISIRI is standing its ground and has refused to give carmakers' low-quality products any wiggle room.

Head of the ISIRI Nayereh Piroozbakht made some reassuring remarks recently in regard with the matter, saying, "We certainly will not back down. We will not give ground. What matters to us foremost is the public's safety and health."