Baku, Azerbaijan: A Joint Azerbaijani-Iranian car production plant will market cars in Russia, Ukraine and Central Asian states.
Russia, Ukraine and Central Asian states are target markets for the sale of two brands–“Khazar LD” and “Khazar SD”. Both models will reach markets by the end of Year 2018.
EX-production plant price of Khazar LD” will be around $8,200 and Khazar SD”will be less than $9,400). Joint production plant will offer soon SUVs ranging from $10,500 to $11,700.
Joint Azerbaijani-Iranian car plant is situated in Neftchala Industrial Zone with a capacity of producing 10,000 cars a year. It may be mentioned that the Azerbaijan-Iran automobile factory Khazar started production of cars in April 2018. The plant produces cars under the brand name of Khazar, and a number of models of Peugeot and Renault will also be assembled there. The annual capacity of the plant is about 10,000 cars. All cars those are being produced at the factory comply with Euro 5 standards.
It is pertinent to mention that a major Iranian automaker Iran Khodro and Azerbaijani company Azeurocar signed an agreement on August 6, 2016 to establish a joint automobile plant in the Neftchala Industrial Zone.
The total cost of the project is $14.12 million). The Azerbaijani side has invested 75 percent in the factory, and the Iranian side has invested 25 percent.
The plant intends to cooperate with the Sumgayit Industrial Park and SOCAR’s new plant. Some 20 percent of the vehicles will be exported to CIS and Central Asian countries.
AzerNews reported that Azerbaijan is highly dependent on import of cars and the plant will help a certain extent to eliminate dependence on imported cars and at the same time, there will be opportunities for exports.
According to State Customs Committee of Azerbaijan, the country imported 3,506 motor vehicles in January-March 2018, which is by 2.45 times more than the indicator of the same period of last year. The Committee also reported that largest number of vehicles imported to the country during the period accounted for motorcars and other motor vehicles for passenger transportation – 3,158 (an increase of 3.7 times).
