Iran, Azerbaijan to Launch Car Joint Venture

Iran, Azerbaijan to Launch Car Joint VentureIran, Azerbaijan to Launch Car Joint Venture

On the eve of President Hassan Rouhani’s upcoming visit to Baku, Iranian Minister of Industries, Mines and Trade Mohammad Reza Nematzadeh will arrive in Azerbaijan on August 6 to attend a ceremony for launching a car joint venture.

The minister will attend a groundbreaking ceremony for the construction of the car factory in Azerbaijan’s Neftchala District on Saturday, an informed source told Trend News Agency.

Iran Khodro Company, the giant Iranian automaker, is setting up the venture with Azerbaijan’s Azeurocar to jointly produce four Iranian car brands, namely Dena, Runna, Soren and Samand.

The joint venture’s annual capacity is estimated to be about 10,000 cars that will be largely exported.

Rouhani is due in Baku on August 7 for trilateral and bilateral talks with his Azerbaijani counterpart, Ilham Aliyev, and Russian counterpart, Vladimir Putin, on issues of mutual interest and regional importance.

The presidents of Iran and Azerbaijan are expected to follow up on the implementation of earlier agreements in the fields of commerce, industry, energy, culture, banking, consular facilities, telecommunications and railroad transportation.

IKCO is Iran’s largest automaker and annually produces about 600,000 cars.

A year ago, IKCO’s Managing Director Hashem Yekezare said Iran plans to produce cars in Azerbaijan and is negotiating a joint venture to set up a car assembly plant.

He noted that the plant will be built using Azerbaijani investments and the production will start roughly two years after obtaining the license. In April, Ali Elmi, the company’s deputy CEO, said in April that the company planned to export 20,000 cars last year, but could not achieve the goal due to sanctions and forex fluctuations and problems in opening LC.

  IKD’s Initiative   

In July, Iran Khodro Diesel Company (IKD) launched an initiative in Azerbaijan Republic.

“Truck maker Iran Khodro Diesel Company seeks to launch a factory in Azerbaijan,” deputy minister of industries, Mohsen Salehinia, said at a press conference in Tehran at the time.

Following negotiations between the two countries, Azerbaijan has been offered a business plan by IKD.

According to Salehinia, Azerbaijan is currently considering the proposal, AzerNews reported.

Iran Khodro Diesel Company is a leading manufacturer of commercial vehicles, including trucks, buses, minibuses and vans, in the Iranian market and in Middle East, CIS and African markets.

The company, established in 1966, has about 70% of the local industrial vehicle market share.

IKD’s annual production is over 20,000 units of heavy and semi-heavy vehicles such as trucks, buses and vans.