Dr. Mansour Moazami, the chairman of the board of directors of the Industrial Development and Renovation Organization of Iran (IDRO), signed a memorandum of understanding with the South Korean Daelim Motor Company to manufacture electric motorcycles in Iran. “The joint company can meet domestic and regional demands,” Dr. Moazami said after the signing ceremony.”

According to the IDRO chairman, the memorandum of understanding aims to bring IDRO and the South Korean partner to manufacture electric motorcycles in Iran. “Up to now, no electric motorcycles have been produced in Iran and IDRO and the South Korean Daelim Motor Company will be the first ones to manufacture the product in Iran via establishing a joint company,” Dr. Moazami underlined. Putting the number of motorcycles in Iran at eight millions, Dr. Moazami noted that the market is a very enticing one, yet to introduce electric motorcycles into the market more investigation is required. The advantage of the joint venture, according to Dr. Moazami, is that it can meet domestic needs and partially, regional demands. “Therefore, it is a unique opportunity for the two countries to have export goals.” “For the time being, we are sizing up the market, the technology, as well as the way the cooperation should continue and the two sides should sign the contract within a short period of time,” Dr. Moazami went on to say.

 

Three preconditions for foreign companies to enter Iran

Elsewhere in his remarks, the IDRO chairman listed three preconditions for foreign companies to participate in the Iranian market. The first one is that any sort of partnership should be based on bilateral agreements with an eye on domestic capacities. This will demand foreign companies to channel their investment into the country. The second condition is the transfer of technology. That is, foreign companies have to share latest technological breakthroughs with their Iranian partners. And finally, the third precondition is to follow exports goals. “Through partnership with Iran, foreign companies should be able to enter regional markets, as well,” Dr. Moazami reminded.

 

Details of the contract

Referring to the details of memorandum of understanding, Fardad Daliri, the director for promotion of large energy and infrastructure projects at IDRO, said the electric motorcycles will have a range of 60 km per charge, with a maximum speed of 70 km per hour. With a rechargeable battery of 3 KW, these electric motorcycles are one of the best options for civic uses, Daliri said, adding this is fortunate that municipalities and the government are realizing the potential and this has driven IDRO to produce electric motorcycles in the country. “The cooperation will be based on a fifty-fifty joint venture. Either a new factory will be constructed or a new one purchased,” Daliri said, adding, IDRO insists on making the best use of domestic capacities.

 

IDRO should pave the way for such activities, but will entrust the new factory to a private partner three years after opening the factory. At the outset, 40 percent of the motorcycles will be manufactured by Iranian manufacturers with more indigenization happening at next stages. With a primary financing of €4 million, the two sides have agreed to finance the project equally. Daliri further said economic and marketing studies are being conducted and it is forecast that a contract will be signed in six months. On paving the way for Iranians to use electronic motorcycles, Daliri stated the motorcycles can be charged in two ways: either at home which takes almost two hours or through a fast charging method, taking almost five minutes. Relevant stations will be installed.

 Date:  May 11th 2016

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