Car production grows in country

By AzernewsBy Abdul Kerimkhanov

Azerbaijan has been paying special attention to the development of the automotive industry in recent years.

As many as 436 cars were manufactured in Azerbaijan in January-April 2019, which is 3.4 times more compared to the same period of 2018, according to the country's State Statistical Committee.

The total production of cars, trailers and semi-trailers in the country amounted to 28.6 million manats ($16.8 million). This is an increase of 8.6 percent over a year.

Meanwhile, Azerbaijan imported a total of 7,250 cars worth 92.4 million manats ($54.35 million). The country also imported 643 trucks totaling 10.1 million manats ($5.9 million). This is an increase of 2.03 and 2.5 times, respectively.

In addition, Azerbaijan imported 44 buses for 1.6 million manats ($940,000), which is an increase of 2.3 and a decrease of 7.4 percent, respectively.

In 2019, car production in Azerbaijan in terms of value will reach 31.7 million manats ($18.6 million), in 2020 the figure will be 56 million manats ($32.9 million), in 2021 it will make up 85.3 million manats ($50.2 million), and in 2022 it will reach 113.3 million manats ($66.6 million), according to government estimates.

It is planned to gradually increase the production volume of passenger cars to 7,000 units per year in quantitative terms. For now, their number is projected at 600 units in 2019. But the volumes will significantly increase to 2,000 units starting from 2020, 3,500 units in 2021, 5,300 in 2022, and finally, reach 7,000 units in 2023.

Trucks production is also set to expand. In 2019, as many as 55 vehicles are expected to be produced.

Since 2018, a new automobile plant began operating in Azerbaijan producing cars under the "Khazar" brand. This contributed to a significant increase in passenger cars’ production in Azerbaijan. Previously, only the Nakhchivan Automobile Plant operated in the country, where "Lifan" cars were assembled.

The country also has the Ganja Automobile Plant, where a number of trucks of Belarusian and Russian companies are manufactured. Ganja Automobile Plant is the largest assembly plant of Belarusian tractors outside the Eurasian Economic Union. Launched in 2004, the plant organizes the assembly of all types of trucks and tractors of Belarusian production since 2006. So far, more than 10,000 Belarusian tractors and specialized equipment have been assembled at the Ganja Automobile Plant.

The plant produced 478 units of machinery in January-April 2019. In addition, the plant manufactured 478 units of machinery, including 466 different models of tractors, one MAZ automobile trailer, one KAMAZ automobile, two MAZ buses and five tractor trailers with a self-operating mechanism.

In general, Ganja Automobile Plant produced 8 models of MAZ cars in the amount of 2,864 units. Some 30-40 percent of the assembly of these vehicles was provided by local production. Moreover, the plant manufactured 330 MAZ trailers and 3,202 units of attachments, 208 KAMAZ trucks and 411 Ural vehicles.

Another automobile plant of the Russian GAZ Group is planned to be built in the Hajigabul industrial zone in late 2019.

Moreover, there is a joint venture between Khazar OJSC Azermash and Iran Khodro, commissioned in Neftchala industrial park on March 29, 2018, which costs $15 million (75 percent is Azermash’s share and 25 percent is Iran Khodro’s share).

The plant has 300 employees and is capable to manufacture up to 10,000 cars per year. At the same time, if necessary, it is possible to switch to a three-shift operation, and without additional space, bring the assembly volumes to 30,000 cars a year.