Iran, Azerbaijan to cooperate in car manufacturing

Iranian truck maker Iran Khodro Diesel seeks to launch a factory in Azerbaijan, Iranian Deputy Minister of Industry Mohsen Salehinia said at a press conference in Tehran.

Following the negotiations between the two countries, Azerbaijan has been offered a business plan from the Iranian side. Currently, Azerbaijan is considering it, Salehinia told reporters.

Iran Khodro Diesel Company is a leading manufacturer of commercial vehicles, including trucks, buses, minibuses and vans in the Iranian market and several countries in the Middle East, CIS and Africa.

The company, established in 1966, has about 70 percent of the local market share.

Khodro Diesel’s total annual production is over 20,000 units of heavy and semi-heavy vehicles such as truck chassis, buses and minibuses.

Azerbaijan has a number of its own car manufacturing plants spread over several regions.

The Ganja Automobile Plant, founded in 1986, specializes on assembling of Russian “Oka” and “UAZ” cars, Belarusian “MAZ” trucks and “Belarus” tractors, and Chinese “Changan” vans & trucks. In 2008 the plant produced about 600 cars and tractors.

Another big and the most modern plant of Azerbaijan is Nakhchivan Automobile Plant, founded in 2006 and put into operation in 2010. The plant possessing a wide area of 2.6 ha produces 5,000 “Lifan” cars a year.

AzSamand, a factory founded in 2005 in Shamakhi, has already had experience of cooperation with Iran Khodro company. The plant assembles “Samand” and “Runna” cars.

Agricultural machinery is manufactured in Mingechevir and Zeyem.

Overall, automobile manufacturing in Azerbaijan is gaining momentum and is aimed on improving export production in the future.