The Azerbaijani-Iranian automobile plant, Khazar, located in the Neftchala Industrial Park, launched production of the first cars on April 5.
Manufacturing of Dena, Rana, Soren and Samand models under the Khazar brand as well as a number of Peugeot models is established at the plant.
The Khazar plant plans to export about 20 percent of cars that will be produced before 2020 within the first stage of production, Emin Akhundov, the chairman of the board of AzerMash company, which is a co-owner of the plant, told journalists.
He noted that the main export market of the enterprise is the CIS countries. Akhundov added that negotiations are already underway with representatives of foreign countries.
“Orders on the local market are also being considered. The Ministry of Economy became the first customer,” he added.
The factory under the Khazar brand produces cars of the brands Dena, Rana, Soren and Samand, as well as a number of Peugeot models.
The Khazar plant was opened during a two-day visit of Iranian President Hassan Rouhani to Azerbaijan. The annual capacity of the plant is about 10,000 cars. These cars are expected to be delivered to Ukraine, Russia and Central Asia countries in the future.
Iran Khodro and subsidiary of AzerMash AzEuroCar LLC signed an agreement on August 6, 2016, on the establishment of a joint automobile plant in the Neftchala Industrial Park. The total cost of the project is estimated at $14.11 million. Azerbaijan invested 75 percent of the funds, while Iran invested 25 percent.
Earlier, AzEuroCar informed that the new cars will cost around $5,800-7,000 and meet Euro 5 standard. The plant intends to cooperate with the Sumgayit Industrial Park and SOCAR’s new plant.
Azerbaijan and Iran have had diplomatic relations since 1918. Political and economic ties between the two countries have increased in recent years and the two sides have made serious efforts to boost mutual ties. Azerbaijan and Iran have already prepared grounds for private sector investors in order to improve mutual cooperation. Currently, about 450 companies with Iranian capital operate in Azerbaijan.
In 2017, the trade turnover between Azerbaijan and Iran amounted to $257 million, which is 16 percent more than in 2016. In January-February 2018, the trade turnover between Azerbaijan and Iran amounted to about $43 million.