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A Look at MAPNA's Electrification Business: From Inception to the Future
‘Historic Turning Point’ in the Transition from Gasoline to Electric Vehicles
‘Historic Turning Point’ in the Transition from Gasoline to Electric Vehicles
Challenges of EV Adoption in Iran: A Conversation with Adel Dameshghi, Head of EV & Infrastructure Development Center at MAPNA
In June 2024, the Deputy Mayor for Transportation of Tehran announced that four electric vehicle (EV) models had been approved for licensing, and a contract for 1,000 units of one model had been signed with an automaker.
This marks the formal and large-scale initiation of integrating EVs into the country’s transportation system. However, the public opinion faces uncertainties about EV infrastructure.
First, similar experiences in leading countries in EV technology indicate that charging stations and battery supply remain critical challenges, even in the most advanced markets.
Domestic automakers in Iran have largely refrained from entering the EV sector or establishing EV production lines for various reasons. Nonetheless, economic and environmental necessities appear to have driven industrial policymakers to explore alternative strategies, such as leveraging the capacities of other automakers or importers, to implement a plan for replacing internal combustion engine (ICE) vehicles with electric vehicles. This strategy is likely to spark heated discussions about infrastructure requirements.
Adel Dameshghi, Manager of EV & Infrastructure Development Center (EVIDC) at MAPNA Electric & Control, Engineering & Manufacturing Co. (MECO), has been involved in electrification projects for years and offers a unique perspective. He believes the first question to address is whether the country’s power plants have the capacity to handle the additional load required for widespread EV charging.
According to officials at the Ministry of Industry, Mine, and Trade, approximately 50,000 EVs are expected to hit the streets this year. This raises the critical question of what it means to provide infrastructure services for such a volume of vehicles.
Dameshghi explains: “In line with the policies set forth, MECO has made progress in the area of charging infrastructure. Fortunately, the country has reached an good point where nearly all types of charging models available globally are being produced as part of a comprehensive portfolio by MAPNA. Another key point is that we have contracts with all automakers, and agreements with municipalities have also provided us with favorable opportunities to deploy charging stations. However, challenges related to site allocation and land provision for these stations still exist.”
When asked how the country’s limited power generation capacity can meet the growing demand for EV charging in the coming years, Dameshghi highlights the importance of energy storage systems as a critical solution.
According to Dameshghi, MAPNA-developed power plants collectively have a capacity greater than that of 150 countries worldwide. However, energy losses during production and transmission remain a significant issue. One effective way to mitigate this problem is through the establishment of energy storage stations, which can store energy generated during off-peak hours for use during peak demand periods.
Promoting Awareness about EVs
One significant aspect of electric vehicle (EV) adoption in Iran that seems to be underappreciated is the integration of digitization with electrification and the need for fostering a culture of EV usage, including understanding related applications and technologies.
Dameshghi says it is important to raise public education in this area. He explains: “People need to learn how to manage charging their EVs. They need to know how to plan their trips, when to connect to a charging station, and how to maintain the battery at its optimal state. These issues will become pressing concerns for both EV manufacturers and users in Iran in the years to come because the culture of using EVs is entirely different from the internal combustion engine vehicles to which Iranians are accustomed.”
A glance at the history of EV adoption in other countries shows that building awareness and familiarity with this technology takes time.
Last winter, extreme cold weather in the United States caused serious challenges for Tesla owners. Upon arriving at charging stations, many drivers discovered that their vehicles were not charging correctly, leading to complaints. It was later revealed that the extreme cold significantly slowed the performance of batteries and chargers—a limitation that current technology has yet to overcome.
“Tesla had built-in settings to address this issue,” Dameshghi notes, “but it was the drivers’ first experience with such conditions, which left them confused for some time.”
According to Dameshghi, similar challenges have already emerged in Iran. For instance, some drivers neglect to monitor their remaining battery charge, leading to breakdowns on the road. Others mistakenly apply excessive pressure to the accelerator pedal, assuming their EV will respond like a gasoline engine vehicle, which can result in accidents. Dameshghi believes these issues can only be resolved with time and experience.
“This is a process that Europeans and Americans began in 2014,” Dameshghi adds. “That’s why, when we look at these countries today, we see far fewer challenges for drivers with EV technology compared to us. The reason is simple: we are at the stage of EV adoption that they were in 2014.”
A Critical and Historic Moment for Electric Vehicles in Iran
Dameshghi highlights the pivotal stage Iran is facing in adopting electric vehicles (EVs). He warns that poor decisions or misinformation at this juncture could lead to setbacks, fostering public skepticism and distrust in the electrification process.
“If we import EVs into the country without adequate preparation,” Dameshghi explains, “it could negatively affect their performance. Or if we provide these vehicles to people without establishing the necessary infrastructure, it will unintentionally create a negative perception among the public, making it difficult to reverse that sentiment.”
Dameshghi emphasizes that such challenges have been experienced worldwide but must be addressed with careful planning. He underscores the importance of clear and accurate communication, suggesting that information should be disseminated through social media, national broadcasters, and other media outlets to familiarize the public with these concepts.
“This is a major transition,” he notes, “and many people may not initially understand basic concepts such as amperage, kilowatts, and acceleration. For instance, there are differences between various EV chargers, as the communication protocols between chargers and vehicles vary. These are new issues that require public education.”
Dameshghi suggests gradually introducing this knowledge to society, possibly beginning with schools, so that younger generations grow familiar with the concepts. Just as gasoline-powered vehicles necessitated changes in public behavior, EVs will require similar adjustments.
“For example,” he adds, “people must understand that battery consumption in EVs fluctuates under different conditions, such as in cold or hot weather, similar to how fuel consumption changes in traditional vehicles. In cold weather, energy use may increase, and in summer, air conditioning can affect consumption. Driving uphill with a heavy load also demands more energy.”
In EVs, such situations can lead to faster battery depletion. While these issues are not unfamiliar to users of gasoline-powered vehicles, the availability of inexpensive fuel and widespread access to gas stations have minimized their impact. With EVs, however, addressing these challenges will require a shift in public understanding.
Dameshghi stresses the necessity of investing in public education and awareness campaigns to help people adapt to the new realities. Without such efforts, he warns, negative experiences with low-quality products could erode confidence in EVs.
“Public perception is shaped by experience,” he says. “If early adopters encounter problems, it could influence how EVs are viewed and recommended to others. To succeed in this transition, significant investment and effort are required.”
When Will Iranian Drivers Adjust to the Pedal of Electric Vehicles?
“When you drive a gasoline-powered car, the acceleration and power vary depending on the model. However, this mechanism is entirely different with electric vehicles (EVs),” explains Adel Dameshghi.
“EVs lack multi-speed gearboxes, and they reach maximum acceleration within the first five seconds. This experience has two significant implications for EV drivers: it increases the likelihood of accidents and wastes battery energy, as drivers often have to counter the generated power by braking.”
Dameshghi believes that adapting drivers to the unique dynamics of EVs is a crucial part of the cultural transition. “While it’s important to educate drivers about this, we should avoid creating unnecessary concerns. With time and proper education, drivers will naturally become familiar with these differences,” he reassures.
A Shift Beyond Environmental Concerns
Dameshghi underscores that the global move from fossil fuels to electric energy isn’t solely driven by environmental concerns. “This technological shift plays a significant role in integrating smart solutions into various aspects of users’ lives, enhancing overall convenience and quality of life,” he states.
Next-generation EVs are equipped with smart features, offering greater convenience and improving transport efficiency. “The energy efficiency of an EV is roughly double that of a gasoline-powered car,” Dameshghi explains. “With the fuel consumed by a single gasoline car, you can power at least two EVs over the same distance. This cannot be neglected in today’s cost-conscious economies.”
Although specific figures vary by vehicle, Dameshghi emphasizes the exceptional efficiency of EVs compared to fossil fuel-powered cars.
Lithium: A Friend or Foe to the Environment?
A common criticism of EVs concerns the environmental impact of fossil fuels burned for electricity generation, lithium extraction, and battery disposal. According to Dameshghi, the “well-to-wheel” (W2W) efficiency of EVs is between 20% and 26%, compared to 11% to 14% for gasoline-powered cars.
“This process is evolving, just like other environmental damages we’ve addressed over time through improved methods,” he explains.
In Iran, he notes, transitioning energy production toward renewable sources would be more logical. “Unlike Europe, our country has significant potential for renewable energy, such as solar power. If we channel electricity generation toward renewables, we can significantly reduce pollution.”
As for battery-related pollution, Dameshghi points out that past criticisms were valid but are becoming outdated. “Five or ten years ago, battery recycling was minimal, but today factories worldwide recover 40% to 50% of EV batteries, and this figure is improving.”
Concerns over battery costs, which make up a significant portion of an EV’s price, are also likely to diminish, he says. “Major automakers already have systems in place where they charge 30% of the battery’s cost and provide a new one. Additionally, as lithium resources dwindle, automakers are turning to alternative energy sources for EVs.”
Lithium or Hydrogen: Which One Holds the Future?
According to Adel Dameshghi, challenges associated with lithium have prompted major automakers to explore alternative energy sources. One potential substitute, he suggests, is hydrogen fuel.
One of the biggest advantages of hydrogen fuel is its reduced environmental impact. While lithium batteries rely on the extraction of natural resources like lithium, cobalt, and nickel—processes that can harm the environment—hydrogen fuel is produced through water electrolysis, which has a significantly lower environmental footprint.
Additionally, hydrogen-powered vehicles take far less time to refuel compared to lithium battery-powered EVs. Filling a hydrogen tank takes just a few minutes, whereas fully charging a lithium battery can take several hours. This advantage is especially critical for commercial users and public transportation, where operational efficiency is paramount, highlights Dameshghi.
Another benefit of hydrogen-powered vehicles, he maintains, is their extended driving range. Furthermore, lithium batteries tend to underperform in extreme temperatures, potentially losing efficiency in very hot or cold conditions. In contrast, hydrogen fuel is less affected by temperature fluctuations, making hydrogen-powered vehicles more reliable in diverse climates.
Despite its benefits, hydrogen is not without its challenges. One major limitation is the lack of hydrogen refueling infrastructure. Dameshghi says expanding this network requires significant investment and collaboration between governments and private sectors. Additionally, the costs of producing and storing hydrogen remain high, necessitating advancements in related technologies.
Dameshghi highlights one critical point about transitioning to hydrogen-powered vehicles: much of the existing EV platform can be retained. “Switching from lithium-powered EVs to hydrogen vehicles is not as drastic as moving from gasoline to electric vehicles. In many ways, the two share similarities, but with hydrogen, you can refuel much faster,” he explains.
Is Battery Swapping Feasible in Iran?
The challenges of charging electric vehicles (EVs) and building widespread charging stations have led many automakers to consider an alternative: battery swapping. This approach allows drivers to exchange their depleted battery for a fully charged one at a station, bypassing the need for long charging times.
Under this system, battery ownership shifts away from the driver. Since batteries—currently a significant portion of EV costs—are removed from the equation, EV prices become more competitive with gasoline-powered cars. It’s an idea that could potentially transform the electric vehicle industry. However, Dameshghi is skeptical and dismisses its practicality in Iran.
He explains that battery swapping has not proven to be a successful model even in other countries. For a country like Iran, with its vast geography and unique topography, implementing such a system would require heavy infrastructure investments. Despite its potential benefits, the concept isn’t universally applicable and seems particularly impractical for widespread adoption in Iran.
While Dameshghi is unconvinced about battery swapping for cars, he sees great potential for its application in electric motorcycles. “In this case, the model works,” he notes, adding that MAPNA Group has already completed product development and related software for battery-swappable electric motorcycles.
The system significantly reduces the upfront cost of electric motorcycles by removing the battery from the purchase price. Instead, the rider leases the battery and pays for its use over time, effectively spreading out the cost under a “charging fee.”
Dameshghi says this approach has multiple benefits; eliminating the noise pollution of gasoline-powered motorcycles and reducing urban air pollution. He believes these advantages are compelling enough to drive a transition from gasoline-powered motorcycles to electric alternatives.
Broader Solutions for EV Adoption
To further promote EV usage, Dameshghi suggests creating accessible fast-charging stations in residential areas and on city streets. However, addressing Iran’s electricity and infrastructure challenges requires significant investment.
He proposes establishing a National Public Charging Development Fund, with automakers playing a central role in financing it. The fund’s resources could come from contributions by automakers and from gradual increases in gasoline car purchase fees, with a portion of these revenues directed toward EV infrastructure.
Dameshghi emphasizes a gradual implementation to avoid burdening consumers. For instance, many countries increase gasoline car fees by 0.5% annually, reaching 10–15% over a decade. Such measures could finance a comprehensive EV charging network across the country. Therefore, laws and regulations need to be devised in this area.
Dameshghi acknowledges the ongoing debates about EVs’ true environmental impact. While EVs reduce tailpipe emissions, the broader energy production cycle must be considered. Key questions include: Can Iran’s current power grid, already under strain, handle the increased energy demand from EVs? Will the shift to EVs genuinely reduce pollution given the country’s reliance on fossil-fuel-powered electricity generation?
“These questions should be addressed carefully,” he stresses.
Will the rise of EVs lead to job loss for mechanics?
The rise of electric vehicles (EVs) is set to transform a significant part of Iran’s automotive sector. Over the next decade, businesses will need to adapt to this new reality.
Dameshghi explains how the transition is being managed. He notes that MAPNA’s subsidiary, MECO, collaborates with groups previously involved in producing traditional buses. These teams are now continuing their work with new training and modern equipment.
“In one automotive company, the same team that produced gasoline cars now works on manufacturing EVs,” Dameshghi states. “Similarly, our procurement team, which once focused exclusively on power plant purchases, now handles EV-related acquisitions. It’s the same team, but they’ve received new training.”
The shift to EVs may result in job losses in some areas, as EVs require less maintenance and create fewer ongoing expenses for consumers. However, Dameshghi believes new opportunities will arise in digital services and value-added solutions. While some roles will disappear, others will emerge, and efforts will be made to retain existing workforces through upskilling and adaptation.
Critical Role of Charging Infrastructure
Dameshghi stresses that developing EV charging stations is essential for the broader success of the electrification project. He outlines two major MECO-run initiatives currently underway. The first plan is to establish public charging stations in locations where electric buses are used. Public transit agencies purchase chargers alongside their electric bus fleets. Pilot stations have already been established in cities like Arak and Karaj and are expanding, he says.
The second plan is to provide charging infrastructure for electric taxis. He says Tehran has implemented the first project, with the city municipality acquiring necessary chargers. Similar steps are being taken in Karaj. Dameshghi highlights the role of municipalities and the Ministry of Interior in funding and accelerating these efforts.
Home and Public Charging Solutions
For private EV owners, home charging is a primary solution. Dameshghi explains that individuals who purchase EVs typically install home chargers or use portable chargers included with their vehicles. Public charging stations, meanwhile, serve as a backup for urban use and intercity travel.
Dameshghi emphasizes that cultural shifts are just as important as technological developments. For instance, plug-in hybrid vehicles must be charged at home to maximize efficiency. Most personal vehicles in Iran travel less than 500 kilometers daily, meaning they typically only need charging once or twice a week. This reduces the demand for public charging infrastructure but requires consumer awareness and planning.
Dameshghi envisions a future where Iran navigates the challenges of electrification with a balance of innovation and cultural adaptation. By combining investment in infrastructure, workforce reskilling, and public education, the country can embrace EVs without leaving traditional industries and workers behind.
Slow vs. Fast Chargers: Which is Better?
At first glance, it may seem obvious that fast chargers are the preferred choice for EV drivers—they want to finish charging quickly and get back on the road. However, Adel Dameshghi highlights important considerations that challenge this assumption.
He explains, “The majority of chargers installed worldwide are slow chargers. These chargers not only put less strain on the power grid but also help preserve the lifespan of EV batteries. For this reason, it’s more beneficial to expand the use of slow chargers in homes and on streets, making it easier for people to charge their vehicles.”
Dameshghi stresses the importance of public awareness and education to drive cultural change toward EV adoption. He recommends leveraging schools and media campaigns to inform citizens about the benefits of EVs and the practicalities of charging.
Such efforts, coupled with well-planned infrastructure development and widespread collaboration, can facilitate the transition to electric mobility. Though these cultural changes will require time and sustained effort, Dameshghi believes they are essential for achieving long-term success in electrification.
MAPNA Group: The Caretaker of Iran’s Electrification Industry
With MAPNA’s extensive expertise and experience in electrification through its subsidiary, MAPNA Electric & Control Engineering Company (MECO), one may wonder why the company itself doesn’t enter the market as an electric vehicle (EV) manufacturer.
Adel Dameshghi says the answer lies in economic calculations. He explains that Iran’s domestic market demands around 600,000 to 700,000 vehicles annually. He noted that higher demands arise are speculative as people treat cars as an investment rather than a utility.
For a company to make EV manufacturing viable, it would need to produce at least 4 million vehicles annually. Below this volume, production costs would render the vehicles too expensive and would not be economical.
The inability to export vehicles further exacerbates the issue, as limited domestic demand makes scaling up to profitable production levels nearly impossible.
Instead of becoming an EV manufacturer, MAPNA has positioned itself as a supporter of the broader EV ecosystem. Dameshghi likens MAPNA’s role to that of a nurturing caretaker, aiding other players in the industry.
“We build charging networks, provide charging services, develop apps, and collaborate with companies like Kerman Motor to produce components,” says Dameshghi.
MAPNA Group has also partnered with Oghab Afshan to produce 500 electric buses so far. The first electric car ever purchased by an Iranian consumer was a joint product of MAPNA Group and Kerman Motor, reflecting the company’s supportive mission to complement, rather than compete with, automakers.
As major global automakers commit to phasing out gasoline vehicles over the next decade, Dameshghi shares his vision for Iran: 70% electrification of public transportation and 20% adoption of EVs in personal vehicles by 2034.
He acknowledges that this transition is tied closely to Iran’s economic growth. In 10 years, gasoline vehicle parts will become scarce globally, forcing even importers to shift toward EVs.
Iran’s economy, according to Dameshghi, could drive a 30% increase in EV penetration within this timeframe. Exceeding this threshold, he says, would be a significant achievement for any government. He also highlights a shift in global policy: instead of incentivizing EV purchases, many countries now penalize gasoline vehicles, effectively encouraging the adoption of cleaner technologies.
A Historical Turning Point
Dameshghi concludes the discussion with a sense of urgency: “We are at a historical turning point in the generational shift of automobiles in Iran. It’s crucial how we act now—both us and you.”