GAZ Group, a Russian automotive conglomerate, has signed a memorandum of understanding (MoU) with the municipalities of four Iranian cities for the delivery of 900 buses to renovate public transport fleets.
GAZ, a company of Russian Machines Corporation, signed the MoU with the mayors of Tabriz, Karaj, Qom and Urmia about the delivery of LIAZ buses. The parties agreed both on sales of finished products and the delivery of CKD kits after establishing GAZ Group assembly operations in Iran.
According to Trade Arabia new website, the development is seen as a new stage in the exploration of the Iranian market by Russian firms, in addition to cooperation in the field of railroad equipment and production of construction and road construction vehicles.
Specifications of the LIAZ bus models for delivery to Iran will be determined by the technical working group that will include representatives from the two sides. Deliveries are scheduled to begin early this year.
An Iranian delegation visited the Likino Bus Plant to get familiar with the experience of bus maintenance at the GAZ Group. The guests also got acquainted with the range of GAZ products during their visit to the Gorky Automobile Plant.
Manfred Eibeck, CEO of the Russian Machines Corporation, said, “We consider the agreement reached by GAZ Group to deliver buses to Iran as a landmark event indicating the fact that our cooperation has entered into a new strategic stage.”
“Iran today is a promising market for different directions of Russian Machines businesses. We are actively collaborating with the Iranian side in the field of railway carriage-building - starting from 2015, 272 railway car kits have been delivered to Iran by the RM Rail Holding. A number of new contracts with major transport operators is now in the final stages.
The Russian official went on to say, “In addition, for more than a year and a half we have been working with Iranian partners on road construction vehicles. Our main goal here is to localize, to produce and to promote the TG series of graders within Iran. In 2017, it is scheduled to supply to Iran the CKD kits for the assembly of the first batch of motor graders."
Vadim Sorokin, GAZ Group president said: “We are interested in organizing throughout Iran a full distribution and high-quality after-sales service for all our products: light commercial vehicles, city buses and coaches, heavy trucks.
“We are also ready to supply YMZ engines to Iranian companies producing trucks, buses, agricultural machinery, specialized vehicles, electric generators and small boats.
Due to the fact that we produce vehicles in different segments of commercial transport, we are able to offer Iranian clients a package solution, which will provide integrated transport service for their business.
Morteza Saqaianejad, the mayor of Qom said, “I am very glad that cooperation between Russia and Iran is strengthening and developing. People in Iran are unfamiliar with the Russian industry.”
“And such visits are very useful to study the possibilities of our cooperation. Before the trip to Russia we carefully studied the potential of GAZ Group. As a result of the visit, we have strengthened our trust and we are looking forward to a long-term relationship.
“I would like to point out that we found a high level of technology at GAZ Group plants. We saw that an impressive job was done to introduce the quality standards within the framework of cooperation with global OEM’s. I think your (Russian) technology is competitive versus the European ones,” he added.
The Russian deal follows a contract Belarusian bus builder Belkommunmash signed to sell electric buses to Tehran.
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