TODAY.AZ / Business

Prices in car market go up

20 June 2018 [15:11] - TODAY.AZ

By Azernews


By Sara Israfilbayova

The average price in the car market of Baku was 30,208 manats ($17,700) in 2018.

Nusret Ibrahimov, director general of the MBA Group consulting company and real estate expert told Trend that the average price in the car market grew by 11.4 percent compared to the previous month.

He went on to say that 2,134 cars were put up for sale in the automobile market of Baku in May 2018.

“The portfolio of offers in the car market increased by 5.17 percent compared to the previous month. The majority of cars offered for sale -- 86.27 percent -- are cars with gasoline engine. The average price of cars of this category was 30,195 manats ($17,700). Diesel cars made up 13.73 percent of the proposals; the average price of such cars was 30,290 manats ($17,800). The share of cars with automatic transmission was 71.93 percent, with an average cost of 38,023 manats ($22,300). The share of cars with a manual transmission was 28.07 percent, with an average price of 10,180 manats. ($5,900),” the expert noted.

Ibrahimov further mentioned that the average mileage of cars in the market in May 2018 was almost 171,660 kilometers, with a decrease by 8.62 percent over the month, adding that the average age of cars was 12 years.

The expert noted that the average annual wear of cars offered in the market was 6.66 percent.

“At the same time, the average annual wear of cars under five years of age was 8.09 percent, while from 5 to 10 years made up 7.16 percent and from 10 to 15 years was 5.82 percent,” Ibrahimov concluded.

Azerbaijan, which is currently working to develop its car manufacturing industry and encouraging interior purchases within the country, now is operating with different courtiers to develop its own automobile manufacturing market.

Currently, the country 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 opening of plant, that was originally scheduled to open in June, was rescheduled for August  because of the cold winter causing delays in the process of construction. 

The plant with a capacity of about 10,000 cars per year initially will produce four Iranian car brands – Dena, Runna, Soren and Samand.

Production of some spare parts is planned in local factories. It is planned to make proposals to the plants. The production of spare parts will launch if the plants receive positive feedback from the Iranian company.  

A major Iranian automaker Iran Khodro and Azerbaijani company Azeurocar (subsidiary of AzerMash) 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 estimated at 24 million manats ($14.12 million). Azerbaijani company invested 75 percent in the factory, and the Iranian side covered 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.

The Azerbaijan-Iran automobile factory Khazar started production of the first cars in early April.

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. In the future the cars can be delivered to Ukraine, Russia and Central Asian countries.

Azerbaijan 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, according to the 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 – 3,158, an increase by 3.7 times.

URL: http://www.today.az/news/business/171174.html

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