Government Tightens Iran's Vehicle Scrappage Rules, Imposing Transit and Fuel Restrictions on Aging Vehicles

According to Donya-e-Eqtesad, an amendment to the executive bylaw of Article 10 of Iran's Auto Industry Organization Law, approved by the Cabinet on 24 Tir 1405 and communicated by the First Vice President on 12 Mordad, was published Saturday, 17 Mordad (August 8, 2026). Under the amendment, vehicle and motorcycle manufacturers must obtain one scrappage certificate for every four units produced, and importers of hybrid vehicles must provide one scrappage certificate for every two units imported.

For the first time, the revised bylaw also imposes restrictions on the demand side for aging vehicles: certain aging commercial vehicles face cargo and passenger transport limits in major cities and a ban on entering low-emission zones, and vehicles that do not meet requirements will be barred from receiving first and second tier subsidized fuel quotas. Aging trucks and tractor-trailers can also earn tradable fuel-saving certificates on the energy market. Donya-e-Eqtesad said the change follows a decade of stalled, slow progress in retiring aging vehicles from the country's fleet.