Azerbaijan boosts car production by 2.4 times in Q1 2020

By Ofeliya Afandiyeva

Azerbaijan increased the volume of its car production by 2.4 time year-on-year in the period of January-March, local media reported citing Azerbaijani State Statistics Committee on April 20.

The country produced 672 automobiles in the reported period and as of April 1, there are 221 cars in stock.

At the same time, based on the current data, 85 tractors were produced in Azerbaijan in January-March, which is 72.8 percent less than the same period in 2019. As of April 1, 2020, there are 302 tractors in stock.

The committee added that in the medium term, automobile production in Azerbaijan should reach 5,000 units per year.

Note that in 2019, car production in Azerbaijan amounted to 2.36 thousand units, which is 2.4 times more than in 2018. Last year, Azerbaijan also produced 905 tractors for various purposes (a decline of 30.5 percent).

It is worthy to mention that the automobile industry has been playing an active role in Azerbaijan’s non-oil industry in recent years.

There are three motor vehicle manufacturing plants in Azerbaijan, including the Khazar motor plant in Neftchala, Ganja Automobile Plant and Nakhchivan Automobile Plan.

A major Iranian automaker Iran Khodro and Azerbaijani company Azeurocar, a subsidiary of AzerMash, signed an agreement on August 6, 2016, to establish a joint automobile plant in the Neftchala Industrial Zone and as a result of this agreement, the joint Azerbaijani-Iranian plant Khazar in the Neftchala industrial park opened on March 29, 2018.

In addition to passenger cars, Azerbaijan’s oldest vehicle factory, the Ganja Automobile Plant, assembles Belarusian MAZ truck and the Belarus tractor, and Russian KamAZ and Ural trucks. It should be noted that Ganja Automobile Plant is the largest assembly plant of Belarus tractors outside the Eurasian Economic Union.

Moreover, another automobile plant that opened in Nakhchivan back in 2010, which produces 17 models of NAZ Lifan cars for various purposes, is the only enterprise in Azerbaijan where all car parts are assembled under the direct supervision of Chinese automotive specialists. Since April 2019 the plant became part of Cahan Holding

According to government forecasts, the cost of car production in 2020 will amount to $33 million, in 2021 – $50.2 million, and in 2022 it will reach $66.7 million.

In quantitative terms, the country plans to gradually increase passenger car production to seven thousand units per year. Since 2020, the volume will grow to two thousand units, in 2021 - up to 3.5 thousand units, in 2022 - up to 5.3 thousand units and, finally, in 2023 - up to seven thousand units.