TODAY.AZ / Business

Country starts sales of cars jointly with Iran

07 June 2018 [10:02] - TODAY.AZ

By Azernews

By Sara Israfilbayova

Sale of cars manufactured at the joint Azerbaijani-Iranian plant in the Neftchala Industrial Zone will be launched in coming days.

Chairman of the AzerMash Board told Trend that at the current stage, two models - Khazar LD and Khazar SD will be offered to customers, adding that other cars under the Khazar brand will go on sale until the end of 2018.

In early April, the Azerbaijan-Iran automobile factory Khazar started production of the first cars.

The plant produces cars under the brand name of Khazar, and a number of models of Peugeot and Renault will also be assembled there. The annual capacity of the plant is about 10,000 cars. It is expected that in the future the cars will be delivered to Ukraine, Russia and Central Asian countries.

The cost of cars will amount to 14,000-16,000 manats ($8,200-$9,400). By the end of 2018, the plant plans to launch production of new models, which will cost a little more - 18,000-20,000 manats ($10,500-$11,700).

All cars produced at the factory comply with Euro 5 standards.

A major Iranian automaker Iran Khodro and Azerbaijani company Azeurocar (subsidiary of AzerMash) signed an agreement on August 6, 2016 to establish a joint automobile plant in the Neftchala Industrial Zone. The total cost of the project is estimated at 24 million manats ($14.12 million). The Azerbaijani side has invested 75 percent in the factory, and the Iranian side has invested 25 percent.

The plant intends to cooperate with the Sumgayit Industrial Park and SOCAR’s new plant. Some 20 percent of the vehicles will be exported to CIS and Central Asian countries.

Currently, Azerbaijan is highly dependent on import of cars and the plant will help a certain extent to eliminate dependence on imported cars and at the same time, there will be opportunities for exports.

Azerbaijan imported 3,506 motor vehicles in January-March 2018, which is by 2.45 times more than the indicator of the same period of last year, according Azerbaijan’s State Customs Committee.

The Committee reported that the largest number of vehicles imported to the country during the period accounted for motorcars and other motor vehicles for passenger transportation – 3,158 (an increase of 3.7 times).


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