Azerbaijan to produce buzes with electric motors

In Sumgayit Chemical Industrial Park, the production of buses with electric motors will be started within the framework of cooperation with the Chinese company "BYD Company Limited," A zernews reports to the Economy Ministry.

For the purpose of localizing the production of spare parts for the project, the possibilities of realizing the local potential are being investigated.

Making the transport system safer, ecologically clean and reducing the waste emitted into the atmosphere are among the goals of the sustainable development of Azerbaijan. For this purpose, the Economy and Digital Development and Transport Ministries are working on updating the bus fleet of the country. Cooperation with the Chinese company "BYD Company Limited" (BYD) is started for the purpose of supplying the bus park in Azerbaijan at the expense of local production. BYD company was selected among 9 companies specialized in this field from China, Russia and Hungary based on the submitted proposals.

"Azerbaijan Investment Company" OJSC will participate as a shareholder in the electric bus production project. The local partner of BYD company on the project is "Electrify Azerbaijan" LLC, specialized in "SARDA Group" companies. Initially, 34 mln. will be spent on the production of buses with electric motors at the factory to be built in the Sumgayit Chemical Industrial Park by BYD company. It is planned to invest in the amount of US dollars. Taking into account domestic demand and export possibilities, the annual production volume of the company is expected to be 500 units. It is planned to create 800 new jobs within the framework of the project.

From the 3rd year of production, the company plans to localize the production of spare parts for electric buses, which will account for 40% of the total capital cost of buses by 2030. The possibility of realization of the local potential in this regard has already been started.

Local production of buses will start in 2025. In addition, in the framework of the COP29 event to be held in Azerbaijan in November 2024, BYD company electric buses are planned to be brought to Azerbaijan and put into operation.

In the future, it is planned to cooperate with BYD company in such fields as the production of low-tonnage electric trucks, electric motor vehicles for utility use, electric motor passenger cars, and the assembly of batteries for electric energy storage. It is planned to make an additional investment of approximately 60 million US dollars by the company in these projects.

To note that the BYD company, which was established in 1995, became the world's first by realizing the record sale of 3 million new energy vehicles in 2023. The company is considered one of the world's leading technology companies, implementing the latest innovations in the fields of automotive manufacturing, electronics, electric batteries, renewable energy and rail transport.