The country’s first automotive venture capital fund, operating under Kerman Motor, has officially commenced its activities with an allocated budget of IRR 10 trillion.
The quarterly meeting of the CEOs of companies affiliated with Kerman Automotive Industries was held on Wednesday, June 30, 2026 (1405/04/10), at the conference hall of the Saadat Abad Building. The meeting began with the recitation of verses from the Holy Quran.
Eng. Shahbakhsh, CEO of Kerman Automotive Industries, expressed his condolences on the occasion of Muharram and the martyrdom of the late leader, as well as a number of military commanders and fellow citizens who were martyred in what he described as the unjust attack by the United States and Israel. He described the past year as a difficult one in various respects, including economic and production-related challenges, which had negative effects on the companies within the Group.
He added that, with approximately 60 percent of the companies’ annual general meetings having now been held, preliminary estimates indicate that the Group’s performance this year is not expected to be lower than that of 2025. “Our effort is to maintain the minimum level of activity at last year’s level, and if peace is established and production conditions improve, we hope that through greater efforts in the second half of the year, we can achieve 25 to 30 percent growth by increasing production.”
He noted that although the war was a negative phenomenon, it reminded the Group of the role and importance of artificial intelligence. “We learned that we need to consider enhancing the role of artificial intelligence across all production activities so that we do not fall behind in this field.”
Kerman Motor Share Offering and Expansion of Production Capacity
Eng. Shahbakhsh subsequently announced that Kerman Motor’s shares would be offered following the company’s Annual General Meeting, emphasizing that through this major step, the country’s largest private automaker would offer its shares on the second market, an initiative that would benefit both the country and the development of the Group.
He stated that another fundamental initiative is the reconstruction of Kerman Motor’s facilities and the expansion of the J1 production line at the Nakhl-e Argh-e Kerman plant. Completion of both projects, he noted, would contribute to further development and greater self-sufficiency in the Group’s automotive industry.
Kerman Motor’s Venture Capital Fund and Innovation Investment Activities
Mr. Jabal-Ameli, CEO of the Kerman Motor Venture Capital Research and Technology Fund (CVC), presented an overview of the fund’s activities and achievements since its establishment.
Referring to the fact that the Kerman Motor Fund is the first venture capital fund in Iran’s automotive industry, with registered capital of IRR 10 trillion, he stated that the institution’s primary missions are “technology development,” “investment in knowledge-based and innovative companies,” and “financing strategic projects” through leveraging financial resources and creating synergies among the innovation ecosystem capacities of Kerman Motor.
He added that despite the country’s special circumstances and the fact that a significant portion of the fund’s activities coincided with the Ramadan War, a number of important measures had been successfully undertaken.
These included obtaining the operating license, establishing governance structures, developing investment and risk-management frameworks, establishing cooperation with universities, the Vice Presidency for Science, Technology and Knowledge-Based Economy, the Innovation and Prosperity Fund, and technology centers, as well as reviewing and evaluating innovative projects. He stated that these initiatives had progressed at a satisfactory pace.
Mr. Jabal-Ameli also announced the design and implementation of various investment models, including direct investment, co-investment, civil partnership, and the Synergy Plan.
He explained that these instruments would be used to leverage financial resources and direct capital toward knowledge-based projects, advanced technologies, and Kerman Motor’s supply chain. He further announced that studies and evaluations are currently underway for 10 technology projects valued at more than IRR 10 trillion.
Educational Development at New Arg
Ms. Saeedi, CEO of the New Arg Educational and Cultural Institute, presented a report on the institute’s activities and emphasized the importance of companies’ commitment to and investment in the education of employees’ children and their workforce.
She identified the construction of two factory-adjacent vocational high schools, the renovation, reconstruction, and equipping of more than 5,000 square meters of educational facilities, and the organization of specialized training courses for teachers and school instructors at New Arg by invited authors of school textbooks as among the institute’s key programs.
She emphasized the constructive role of factory-adjacent vocational schools in training committed and capable personnel required by the factories located in New Arg.
She noted that two vocational schools, one for boys and one for girls, currently offer programs in computer science and automotive mechanics. The institute plans to add electrical engineering, tourism, and hotel management programs in order to provide additional capacity for the region’s industrial and tourism sectors.
Kerman Motor Production Performance and New Projects
Eng. Firoozi, CEO of Kerman Motor, explained the damage caused by the war and its adverse effects on automakers’ production levels.
He stated that vehicle production during the first three months of the current year declined by 62 percent compared with the same period last year, while passenger-car production experienced a 35 percent decline.
He added that only three automakers had continued operating during the war: Iran Khodro, with 110,000 vehicles; SAIPA, with 60,000 vehicles; and Kerman Motor, with approximately 10,000 vehicles. Production at other automakers had been suspended.
He further stated that, with the aim of compensating for the production shortfall, the government had held several meetings and issued incentive policies to automakers involving the allocation of foreign currency, financing facilities, and raw materials.
“If these commitments are fulfilled, this will represent a golden opportunity for us to capture a share of the market,” Eng. Firoozi said.
He also announced the implementation of three projects during the current year:
- Obtaining the license to establish Kerman Motor University, which is currently being pursued with the Ministry of Science, Research and Technology.
- Establishing a Kerman Motor casting plant on 10 hectares of land in the Ahmadabad Industrial Estate in Rafsanjan.
- Establishing a factory for the production of electronic circuit boards.
He emphasized that upon completion of these three projects, the company would gain access, within the shortest possible timeframe, to a comprehensive supply chain for critical and technical automotive components.
Major Kerman Motor Factory Renovation Project
The CEO of Kerman Motor also announced the launch of a major renovation and modernization project for Kerman Motor’s factories, covering the paint, body, and assembly sections, with an investment exceeding IRR 7 trillion.
He stated that this major project is being undertaken for the first time in approximately 30 years.
According to Eng. Firoozi, the renovation and modernization of the facilities and equipment will take approximately 16 months. Upon completion, daily production capacity is expected to increase from 12 vehicles to 16 vehicles.
He expressed hope that the plant’s production volume would eventually reach a six-digit annual figure, and that even under the most conservative scenario, annual production would reach 85,000 vehicles.
The meeting concluded at 4:00 p.m. with the recitation of Salawat.