TODAY.AZ / Business

Car prices fall

05 October 2017 [16:52] - TODAY.AZ

By Azernews


By Sara Israfilbayova

Car sales in the traditional car market and in online-mode were at a very low level in September.

Real estate expert Vagif Huseynov told Trend that sudden changes in weather conditions had a negative impact on the car market, adding that active market participants became passive participants.

He went on to say that prices on used cars with at a cost of up to 20,000 manats ($11,700) fell by about 8-10 percent, but prices for expensive cars did not change.

Huseynov stressed that usually the activity of the car market is felt beginning from September and lasts until the end of November.

"In December, due to the holidays, activity declines, and after mid-January activity increases again," the expert explained, adding that auto market was not so active this September.

Azerbaijan plans to produce cars jointly with Iran and will soon launch manufacture of cars in the Neftchala Industrial District.

The plant will operate on the basis of joint project of AzEuroCar LLC and Iran’s largest car manufacturer Iran Khodro. The plant was due to open in June, but because of the cold winter there were delays in the plant's construction. The opening is rescheduled for August.

The plant with a capacity of about 10,000 cars per year initially will produce four Iranian car brands – Dena, Runna, Soren and Samand. The cost of the project is estimated at $15 million.

Production of some spare parts is planned in local factories. For this, proposals will be made to the plants. If the plants receive positive feedback from the Iranian company, then the production of spare parts will begin.  

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.

Speaking about how the plant will get a share in the local market, Azeurocar’s representative said the plant will produce the cheapest cars.

“The price of new cars will be 10,000-12,000 manats ($5,800-7,000). The cars produced at the plant will meet Euro 5 standard”. 

First cars of Azerbaijan-Iran joint car plant are planned to be manufactured beginning from 2018.

While visiting the Neftchala Industrial District in September, President Ilham Aliyev noted that the plant will help to a certain extent to eliminate dependence on imported cars and at the same time, there will be opportunities for exports.

Azerbaijan imported 5,662 motor vehicles in January-August 2017, which is 63.9 percent more than the indicator of the same period of last year, according Azerbaijan’s State Customs Committee.

The Committee reported that the largest number of vehicles imported to the country during the period accounted for motorcars and other motor vehicles for passenger transportation – 4,874 (an increase of 63.5 percent).

URL: http://www.today.az/news/business/165501.html

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