Azerbaijan's automobile production to increase several times [UPDATE]

18 April 2019 10:15 (UTC+04:00)

By Mirsaid Ibrahimzade

In recent years, Azerbaijan has taken active steps to enhance local production of cars. A number of car manufacture and assembly plants have been opened in different regions of the country.

Market Analysis Azerbaijan 2019, presented by the German-Azerbaijani Chamber of Commerce (AHK Azerbaijan), reads that production in the automotive industry of Azerbaijan will reach $20 million this year and $70 million by 2022.

In 2017, the automotive industry experienced a decline. As such, 30 cars were produced in 2017, while the identical figures for 2016 and 2015 were 300 and 700, respectively.

"However, there was a jump in 2018, and 969 cars were produced in the country," the publication says.

Azerbaijan has been paying special attention to the development of the automotive industry in recent years. 

The Khazar car plant, built by AzerMash, is located in southeast Azerbaijan in the Neftchala Industrial Site. All cars produced there comply with Euro 5 standards. Cars have been sold since summer 2018.

In August 2016, big Iranian automaker Iran Khodro and Azerbaijani company AzEuroCar, a subsidiary of AzerMash, signed an agreement to establish a joint automobile plant in Neftchala. The Azerbaijani side invested 75 percent of funds in the plant, while the Iranian side invested 25 percent.

In addition, the groundbreaking ceremony of the GAZ cars assembly plant was held in Azerbaijan's Hajigabul industrial area this February. The estimated investment in the new plant is 14 million manats (over $8 million). The plant owned by AzerMash will assemble a line of 12 types of light-duty Russian trucks of the GAZ Group, the output of which is scheduled for the second half of 2020.

At the initial stage, 100 people will work there, while the assembly volume can reach up to 1,000 cars a year. AzEuroCar will deal with the distribution and maintenance of GAZ vehicles in Azerbaijan.

Moreover, a plant in Nakhchivan opened in 2010 assembles eight models of Lifan passenger cars designed by China’s Lifan Group, which provides all the necessary spare parts for cars to the plant, so they may be assembled in Azerbaijan under the direct supervision of Chinese automotive specialists.

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