TODAY.AZ / Business

Iran Khodro plans to boost annual output in Azerbaijan

05 July 2018 [13:45] - TODAY.AZ

By Azernews

By Kamila Aliyeva

Iran Khodro Group (IKCO) plans to open new production line in neighboring Azerbaijan in a bid to increase its annual production in the country.

“Iran Khodro is equipping its production line in Azerbaijan and plans to increase its daily output from 4 to 8 cars,” Iranian Deputy Minister of Industries, Mining and Trade Mohsen Salehinia told Trend on July 3.

Noting that a second production line is scheduled to be launched in Azerbaijan in the near future, he said that IKCO will produce 2,500 cars a year.

In 2016, Azerbaijan’s AzEuroCar LLC and Iran Khodro signed an agreement to create a joint car plant in the Neftchala Industrial Zone. 

The total cost of the project was estimated at $14.11 million. Azerbaijan invested 75 percent of the funds, while Iran invested 25 percent. 

The Khazar plant was opened during a two-day visit of Iranian President Hassan Rouhani to Azerbaijan. The plant with a capacity of about 10,000 cars per year is currently producing only four Iranian models including Dena, Rana, Soren and Samand.

The plant produced the first cars in May. Some 20 percent of the vehicles was expected to be exported to other CIS countries including Georgia and southern Russia. Earlier, AzEuroCar informed that the new cars will cost around $5,800-7,000. The cars produced at the Azerbaijani plant meet Euro 5 standard as per Azerbaijan’s laws.


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