Mohammad Sadegh Hatami, the head of the Transport Fleet Renewal Headquarters of the Organization for Development and Renovation, announced that nearly 250,000 vehicles will be scrapped in 2025, of which 76,000 units have been replaced. This statistic reflects the government's efforts to renew the fleet and reduce air pollution.
Challenges of Fleet Renewal
Hatami, in an interview with reporters, pointed out the difference between scrapping and renewing vehicles, stating: "The scrapping plan has always existed. We must separate renewal and scrapping from each other. Renewal in the motor, taxi, and bus plan will begin at the start of 2025." He also referred to the economic problems faced by owners of old vehicles, saying: "The gap between the actual replacement cost of a vehicle and the financial capacity of the owners is one of the main obstacles to implementing these plans."
Renewal Facilities and Incentives
Regarding renewal facilities, Hatami said: "Currently, we provide one billion tomans in facilities for taxis related to public transport. For electric taxis, one billion and 500 million tomans in facilities have been allocated." However, providing facilities does not mean covering the entire cost of the replacement vehicle. The increase in vehicle prices has made the owner's contribution still significant, which can be one of the main barriers to owners' participation in the renewal plan.
Hatami also referred to the number of old vehicles in the country, stating: "We have nearly 1.9 million passenger cars over 20 years old that are considered obsolete. About one million of these vehicles are located in eight metropolitan areas."
Scrapping Incentives and Financial Motivations
One of the main challenges of scrapping plans is the gap between the actual value of the vehicle for the owner and the amount they receive from the scrapping process. Hatami said in this regard: "If the incentive amount for vehicles over 20 years reaches 500 million tomans, it will create more motivation for scrapping these vehicles." These statements indicate that one of the main challenges of scrapping plans is the gap between the economic value of the vehicle for the owner and the value considered for it in the scrapping process.
Hatami spoke about other incentives in the plan, saying: "If individuals introduce their vehicles as scrapped vehicles, they will be exempt from restrictions for five years." This could enhance the attractiveness of the plan and encourage owners to participate in it.
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