Economy, Auto

Iran, Azerbaijan Might Produce Buses Under Azermash JV

Iran, Azerbaijan Might Produce Buses Under Azermash JVIran, Azerbaijan Might Produce Buses Under Azermash JV

During a visit to Baku Economy Minister Masoud Karbasian and his Azeri   counterpart Shahin Mustafayev discussed ways to expand collaboration in the auto industry, the local news website Eranico reported.

Karbasian met with the Azeri President Ilham Aliyev and the country’s economy minister on Oct. 27.

Based on an agreement signed between Iran Khodro and theh Azeri automotive company AzEurocCar, a joint venture under the name Azermash OJSC was created in 2016 with an initial investment of $15 million. The two companies are constructing a production plant in Neftchala Industrial District located in southeast Azerbaijan.

Mustafayev says, “Construction of the plant is almost over. Production lines will be installed in November and hopefully the site will be operational in December.”

The first vehicles, namely Dena, Runna, Samand, and Soren, are expected to roll out early next year.

According to IKCO chief Hashem Yekezare, the two sides have agreed to expand collaboration in related fields. “The Azeri side has agreed to increase its investment in the joint venture,” he was quoted earlier as saying.

Production of buses at the Azermash factory was proposed by the Azeri side during Karbasian’s tour of the neighboring republic. No details are available, but he news report said further talks are to be held on the issue.

IKCO started operations in Azerbaijan in 2005 by launching the sales of its Samand model. Over the years 4,500 Iranian vehicles have been sold in that country.

Earlier in September, Azeri President Aliyev visited the Azermash factory which then was under construction and billed the joint venture as “a manifestation of Iran-Azeri relations”.

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