TEHRAN – Iran’s MAPNA Group has signed a Memorandum of Understanding (MOU) with the country’s second-biggest auto-maker SAIPA Group for mass production of the country’s first electric vehicle, IRIB reported.

Based on the MOU, SAIPA Group and MAPNA will collaborate on the design, prototyping, testing, commercialization, and production of new electric vehicles, SAIPA Group’s news portal reported.

In a visit to SAIPA’s production lines on Wednesday, Abbas Aliabadi, the chairman and member of the board of directors at MAPNA Group, said MAPNA has long been pursuing a program for preparing necessary infrastructure for manufacturing electric cars and in this regard, the group plans to design and deliver the country’s first electric car in collaboration with SAIPA Group.

The production of electric cars will be very beneficial for people, in terms of both reducing environmental pollution and energy consumption, Aliabadi said.

The official underlined MAPNA and SAIPA’s cooperation as the first step in the production of electric cars in the country and said: By creating a bond between the two groups, we will use the knowledge and capabilities of both sides as well as new technologies available in this industry.

High cost, an unpredictable market and lack of a supervisory body have been reported to be the main challenges hindering the production of electric cars in Iran, according to a recent study conducted by Majlis Research Center.

Data collected from experts at Iran Khodro Company and SAIPA—Iran's first and second largest carmakers respectively—show that electric cars would cost two to three times more than ordinary cars.

Despite the growing popularity of hybrids and EVs across the world, they have had a slow take-up in Iran as the needed infrastructures are yet to be developed.

EF/MA