Iran to launch vehicle scrappage and replacement program

Iran is set to implement a new regulation to replace aging vehicles, targeting personal cars, internet taxis, public transport, and freight fleets. Under the plan, owners of vehicles older than 20 years may face restrictions on driving in metropolitan areas, fuel subsidies, and vehicle transfers.

To incentivize participation, the government is offering approximately 400 million toman loans with an 8 percent interest rate and a three-year repayment period. Additionally, owners can receive scrappage certificates valued at approximately 60 million toman each, with some vehicles eligible for up to three certificates totaling 180 million toman.

Participants can choose between scrapping their vehicle or replacing it. Those opting for replacement can be introduced directly to manufacturers without participating in a lottery or waiting in queues. The implementation is expected to begin as early as next week, with a one-month review period to follow to assess feedback and suggest potential adjustments or modifications to the restrictions.