Iranian carmaker expands business in Azerbaijan

Automative sector is currently developing fast in Azerbaijan, as more plants engaged in the production of cars are being launched across the country.

Mechanical engineering occupies one of the most important places among the industrial sectors of the country. The origin of the mechanical engineering industry in Azerbaijan is associated with the start of oil production in 1848 and it specialized in the field of petroleum engineering until recently.

In recent years, Azerbaijan has developed newer industries in addition to petroleum engineering. The country has achieved certain success in the development of transport engineering, namely the automotive sector.

Presently, Iran Khodro, the largest Iranian carmaker, is expanding its cooperation with Azerbaijan.

The company has begun production of its Samand model in Azerbaijan, Report.az informed.

Khazar Automobile Company is already producing a Dena sedan. According to IKCO Press, production of the new Samand model has started this weekend.

Earlier, IKCO established a joint venture with the Azerbaijani automobile company AzerMash OJSC Khazar Automobile Company in the Neftchala Industrial Park on August 6, 2016. The total cost of the project is estimated at 24 million manats ($14.12 million). The Azerbaijani side has invested 75 percent, while the Iranian side – only 25 percent.

All vehicles manufactured at the plant comply with Euro-5 standards. The plant plans to start exporting cars next year.

The Khazar plant was opened during a two-day visit of Iranian President Hassan Rouhani to Azerbaijan. The annual capacity of the plant is about 10,000 cars. These cars are expected to be delivered not only to Russia, but also to Ukraine and Central Asian countries in the future.

The plant produces Khazar LD and Khazar SD models. The assemblage of a number of Peugeot and Renault models will be carried out in the future. They will cost 18,00021,000 manats ($10,600-12,300). The cost of cars presently produced at the plant is 14,000-16,000 manats ($8,200-$9,400).