Azernews.Az

By Amina Nazarli

Today when automobile manufacturing is gaining momentum in Azerbaijan, the country eyes producing buses jointly with southern neighbor Iran.

Economy Minister Shahin Mustafayev said that buses can be produced at the joint Azerbaijani-Iranian automobile plant, being built in the Neftchala Industrial District.

This issue was discussed at a meeting in Baku on October 26 with the Iranian delegation headed by Minister of Economic Affairs and Finance Masoud Karbasian.

“We have started initial negotiations on this issue: at the first stage, the production of cars will be established at the plant, but in the future we consider joint production of buses,” Mustafayev told reporters.

The plant, groundbreaking ceremony of which was held in mid 2016, is planned to operate starting December 2017.

"The building and communication lines are already ready, and we are planning to supply the factory with the necessary equipment in November. We want the factory to be opened in December, and it is likely that we will not be able to finish all the work according to the schedule. In this case, the opening can take place in early next year," the minister explained.

The annual production capacity of the Azerbaijani-Iranian automobile factory Azermash OJSC, being built in Neftchala, will amount to 10,000 cars per year. Some 20 percent of the vehicles will be exported to CIS and Central Asian countries.

The project is implemented by Azerbaijani company AzEurocCar and Iranian manufacturer Khodro. The plant, based on modern technologies, equipment and mechanisms, will manufacture car models such as "Runna", "Samand", "Soren", "Dena", "Peugeot-206", "Peugeot-207", "Renault -Tondar “, “Renault-Pickup”.

Earlier, AzEuroCar’s representative noted that the price of new cars will be 10,000-12,000 manats ($5,800-7,000), adding that the cars produced at the plant will meet Euro 5 standard.

Azerbaijan also 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.

Agriculture in focus

Both countries are also interested in cooperation in agriculture, which is one of the most important spheres for Azerbaijan and Iran. The two countries have a great potential to boost agriculture cooperation.

Mustafayev went on saying that the two countries discuss establishing a joint venture for the production of agricultural machinery.

“We are also negotiating the issue of establishing various joint ventures, cooperation in seed production, beekeeping, animal husbandry and other spheres,” the minister said.

Mustafayev added that both economic and political relations between Azerbaijan and Iran are at a high level.

"The trade turnover between our countries increased by 70 percent in 2016 compared to 2015,” Mustafayev said. “The trade turnover increased by 33 percent in January-September 2017, and this is great success, compared to the same period of 2016.”

Political and economic ties between the two countries have increased in recent years and the two sides have made serious efforts to boost mutual ties. The two countries have already prepared grounds for private sector investors to launch mutual cooperation.

Such spheres as agriculture, banking sector, pharmaceutics, as well as cooperation within the international North-South transport corridor are the main areas that the two states are focused on.

Iranian companies have so far invested some $1.2 billion, while some $145 million fell to a share of non-oil sector. Some 538 companies with Iranian capital are operating in Azerbaijan.