Iranian Auto Industry Given One-Year Deadline to Slash Fuel Consumption
In a decisive move to address national energy efficiency, the Iranian President has issued a one-year ultimatum to domestic automakers. They have been directed to optimize vehicle engines and significantly reduce fuel consumption. Officials have stated that failure to meet this target will result in the withdrawal of state support from the manufacturers.
A Multifaceted Challenge
While automakers report having long-term plans for fuel efficiency, experts point to a complex web of challenges that hinder progress. They argue that the issue extends far beyond the car factories themselves.
- The Fuel Quality Dilemma: One expert highlighted a critical inconsistency: domestically produced cars already meet Euro 5 emission standards, but the gasoline distributed in Iran does not. The low octane level of the fuel is incompatible with the advanced engines designed for higher standards, rendering the vehicle standards less effective.
- Infrastructure and Pricing: Analysts point to a systemic issue rooted in Iran’s energy structure. The artificially low and static price of gasoline over the past six years, coupled with high inflation, has removed the economic incentive for consumers to abandon older, fuel-inefficient vehicles. Furthermore, a shortage of robust public transportation infrastructure perpetuates the reliance on personal cars.
- Broader Industrial Habits: The low price of energy has, according to specialists, led to the development of energy-intensive industries across the board. A comprehensive review of the national energy system, integrating both pricing and non-pricing strategies, is suggested as a necessary step for meaningful change.
Automaker’s Roadmap: A Long-Term Transition
In response to the deadline, automotive engineers acknowledge the challenge of achieving significant results within a single year. A representative from Saipa Auto Group explained that reducing fuel consumption is a holistic process involving not just the engine, but also vehicle weight, aerodynamics, and materials.
The company revealed a long-term strategy, stating that a contract with a foreign partner was secured two years ago to acquire a new family of engines. The first of these more efficient engines, which promises approximately one liter less fuel consumption per 100 kilometers, is slated to enter the production cycle by the end of next year. The industry describes itself as currently in a transitional phase, moving from upgraded older engines towards a new generation of technology.