Today.Az » Business » New bus plant to be launched in Azerbaijan
18 April 2019 [17:13] - Today.Az
By Mirsaid Ibrahimzade
In recent years, automotive industry in Azerbaijan experiences positive changes. Azerbaijan is developing its own automobile manufacturing market by launching new plants to increase local production and decrease import dependence.
Within the framework of the visit of Iranian Minister of Industry, Mines and Trade Reza Rahmani to Azerbaijan, the foundation of a bus plant will be laid in Hajigabul on April 18, Sputnik Azerbaijan reports.
Within the two-day visit of Rahmani, he will meet with Azerbaijani Minister of Economy Shahin Mustafayev and Minister of Labor and Social Protection of Population Sahil Babayev, as well as business circles.
The meetings are expected to discuss various projects, including the Rasht-Astara railway and the North-South corridor.
The new plant is expected to produce 500 buses of both European and Asian countries at the initial stage. As many as 100 people will be employed at the enterprise, which will operate on 5 hectares of land. The cost of the project is 11 million manats ($6.47 million).
Iranian-Azerbaijani cooperation in auto-making industry already has successful example.
On August 6, 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 in the plant, while the Iranian side - 25 percent.
Automotive sector is currently developing fast in Azerbaijan, as more plants engaged in the production of cars are being launched across the country.
About 1,000 cars were sold in 2018, which is 32.4 times more than in 2017. However, according to the results of only two months of 2019, 500 vehicles were sold. At the same time, if last year 40 percent fell on purchases by government agencies and 60 percent - by the population, now this ratio has changed. This year only 15 percent account for the state structure while 85 percent falls in the share of the population.