Today.Az » Business » Iran interested in Azerbaijan’s car market
11 August 2017 [15:08] - Today.Az
By Amina Nazarli
Iran is ready to cooperate with Azerbaijan in manufacture of joint cars. An official from the Iranian Automotive Parts Manufacturers Association has expressed the readiness of the manufacturers to cooperate with Azerbaijani counterparts.
Secretary of the Iranian Automotive Parts Manufacturers Association, Mohammad Reza Najafi-Manesh in an interview with Trend touched upon existing cooperation between Iranian leading carmaker, Iran Khodro, and Azerbaijan’s AzEuroCar LLC, and said his country’s auto parts makers are capable of working in collaboration with the Azerbaijani industrialists.
He added that Iranian and European firms have already formed more than 50 joint ventures for producing car parts in the Islamic Republic.
There are about 1,200 auto parts suppliers in Iran, according to the official.
Iranian Ambassador to Azerbaijan Javad Jahangirzadeh earlier told Trend that the Iranian and Azerbaijani carmakers are expected to launch their joint venture in early September and the first products of the plant is expected to hit the market in autumn.
In 2016, Azerbaijan’s AzEuroCar LLC and Iran Khodro signed an agreement to create a joint car plant in Azerbaijan’s Neftchala Industrial District.
The two sides also signed six documents covering licensing, distribution, installation of equipment, engineering and technical support, and other issues necessary for car production.
The plant with a capacity of about 10,000 cars per year will produce four Iranian car brands – Dena, Runna, Soren and Samand. The project is worth $15 million. Some 25 percent of the amount will be invested by the Iranian side.
A total of 20 percent of cars, complying with the Euro-5 standard, will be exported abroad.
Azerbaijan and Iran have had diplomatic relations since 1918. Iran recognized Azerbaijan's independence in 1991, and diplomatic relations between the two countries were established in 1992.
Currently, some 450 companies with Iranian capital operate in the country.
The trade turnover between the countries hit some $15.77 million in January 2017, while the index of last January stands at $9.56 million. In 2016, Azerbaijan’s trade turnover with Iran amounted to $210.76 million, which is 70 percent more than in 2015.