Iranian Companies to Indigenize Motors for Heavy Vehicles

Two Iranian companies signed a memorandum of understanding with a Swedish company for manufacturing motors for heavy vehicles in the country.

Iranian Companies to Indigenize Motors for Heavy Vehicles

Mammut Khodro Company, Oghab Afshan Industrial and Manufacturing Companies signed the agreement with Scania of Sweden.

According to the agreement, motor, chassis and gearbox for commercial vehicles will be manufactured in Iran.

During the ceremony, the CEO of IDRO said that the MoU will immediately be turned into a contract in other words the MoU is a prelude to agreement.

Mansour Moazzami pointed to the plan for modernizing old and worn-out transportation fleet, adding that 202,500 old heavy vehicles are to be replaced with new ones in a three-year span. He noted the project will cost $11b and it will be financed by the National Development Fund and foreigners and the loan will be repaid through saving fuel consumption.

Moazzami noted that the project will save 13m liters of fuel on average per day. He went on to say that Scania has had good mutual relation with Iran and it can invest now on manufacturing chassis, gearbox and transfer of technology in Iran.

Meanwhile deputy head on strategic markets of Scania Company said that Scania has had a long presence in Iran and it has had good role in developing Iran’s heavy vehicles by cooperating with Mammut and Oghab Neshan companies.

He reiterated that Scania is to transfer the new technology on motor and automotive parts of the vehicles which have significant role in saving fuel consumption