Title: Iran Launches Major National Initiative to Modernize Urban Transport Fleet
In a significant move to address urban environmental and economic challenges, Iran has officially commenced a large-scale program to phase out and replace aging motorcycles across the country. The initiative, which began in July, represents a strategic investment in infrastructure modernization and sustainable development.
Pilot Phase Shows Strong Public Engagement
Ehsan Salari, Director of the Modernization and Financial Resource Attraction Office at Iran’s Industrial Development and Renovation Organization (IDRO), reported that nearly 19,000 citizens nationwide have already registered to participate in the scheme. The program is being rolled out in phases, starting with a pilot project in Tehran, where approximately 3,500 registrations have been recorded. Following the initial phase, the program is slated to expand to other major metropolitan areas, including Mashhad and Isfahan. Officials anticipate that all registered outdated motorcycles in Tehran will be replaced by the end of the current Iranian year.
Financial Incentives for a Greener Fleet
The core of the initiative is a structured financial support system designed to make new vehicle ownership accessible. The state is offering substantial incentives to encourage participation:
- For new fuel-injected (gasoline) motorcycles, applicants are eligible for 120 million Tomans in facilities.
- A more substantial 150 million Toman facility is allocated for the purchase of new electric motorcycles, highlighting a focus on cleaner energy transition.
- Additionally, applicants qualify for non-repayable grants. Those replacing an old motorcycle with an electric model can receive a grant of 26.25 million Tomans, while those opting for a new fuel-injected model receive a 9 million Toman grant.
Director Salari elaborated that an individual choosing an electric motorcycle could access nearly 180 million Tomans in combined support, covering a significant portion of market prices, which range from 160 to 200 million Tomans. All facilities carry a favorable 4% interest rate. Currently, five to six domestic companies are prepared to supply the required motorcycles, with applicants receiving an introduction letter to obtain their approved financing from the agent bank.
Addressing a National Infrastructure Priority
The program addresses a pressing national issue. Salari noted that of the approximately 14 million active motorcycles in Iran, over 11 million are classified as outdated, with about 3 million of those operating in Tehran alone. This modernization drive is a key component of broader national efforts to renovate urban transport infrastructure, improve air quality, and enhance public safety.
Looking ahead, authorities have planned to significantly scale the program, aiming to renovate up to 70,000 motorcycles annually starting next year. This structured approach underscores a committed, long-term strategy toward systematic urban renewal and sustainable industrial development.