During a state visit to Baku President Hassan Rouhani and his Azeri counterpart Ilham Aliyev inaugurated the Iran Khodro-Azermash OJSC joint venture on March 29.
With initial annual production capacity of 10,000 units, the Khazar Car Factory will increase output to 15,000 units.
Two sedan models designed by IKCO namely Dena and Dena+ will initially be manufactured in the neighboring republic, President.ir reported.
The plant is located in southeast Azerbaijan in Neftchala Industrial District that was inaugurated in September 2017 by the Azeri leader. During the Khazar factory opening Aliyev said the joint venture is “a manifestation of Iran-Azerbaijan relations”.
He noted that the JV will contribute to reducing his country’s reliance on auto imports and exports are also in the pipeline. The auto joint venture is the largest company in the industrial district.
In addition to Dena and Dena+, three other models namely Runna, Soren and Samand are to be manufactured at the site that will employ 300 people.
According to the Iranian president’s website, vehicles manufactured in Azerbaijan will be exported to countries with which the Azeri state has preferential trade agreements.
Earlier, IKCO export manager, Sabina Nobari, said Iran Khodro is set to export vehicles to the Commonwealth of Independent States through its Azeri operations.
Iran’s auto industries have ties with several of these countries and relations strengthened after President Rouhani took office in 2013 and declared that closer ties with neighbors are among his foreign policy priorities.
The joint venture between IKCO and Azermash was created in 2016 and 24 million Azeri manats ($14 million) have been invested in the project. According to reports, 75% of the investment has been provided by the Azeri side.
On March 27 Azerbaijan Minister of Economy and Industry Shahin Mustafayev visited the production plant. He assessed the training process of local technicians and workers. The first Dena vehicle rolled out of the factory on that day.
IKCO started operations in Azerbaijan in 2005 with the launch of its locally- produced sedan Samand. In the past decade, 4,500 Iranian vehicles were sold in that country.
During the visit, Rouhani was accompanied by the Foreign Minister Mohammad Javad Zarif, Finance Minister Masoud Karbasian and First Vice-President Es’haq Jahangiri.
