Industry, Mining and Trade Minister Mohammad Atabak announced on Sunday the unveiling of a new production line for domestically manufactured hybrid vehicles by the end of the current Iranian year in March 2026.
The rollout, scheduled for next year, marks a major step toward modernizing Iran’s auto industry and reducing environmental emissions, Atabak said. The first hybrid models produced by local manufacturers will be introduced as part of the government’s upcoming initiatives, IRIB reported.
Production volume will depend directly on market demand, the minister added. “As consumers purchase these vehicles, production capacity will naturally expand,” he said, noting that higher output could improve consumer access and ultimately lead to lower prices.
Most new vehicles currently in development will feature advanced engines designed to meet a presidential directive requiring fuel consumption below 5 liters per 100 kilometers. According to Atabak, these engines will significantly enhance efficiency and reduce fuel costs for drivers.
Hybrid models entering the market are expected to achieve substantially lower fuel consumption compared to older vehicles, the minister emphasized.
Meanwhile, gasoline types that have passed rigorous 85- and 125-item quality tests will continue to be produced. Such tests ensure fuel quality and performance, enabling automakers to rely on high-grade gasoline for new engine technologies, Atabak said.
The announcement builds on recent milestones in Iran’s push toward vehicle electrification. In March 2022, an Iranian automotive company based in the southern city of Shiraz unveiled the country’s first all-electric vehicle (EV).
In October 2025, Iran’s second-largest carmaker introduced the country’s first domestically developed Plug-In Hybrid Electric Vehicle (PHEV), as part of broader efforts to align with global trends in automotive electrification. Separately, the country’s largest automaker had already unveiled a Hybrid Electric Vehicle (HEV), which it says is in the late stages of development or pre-production.