Tehran, Baku to Produce 4 Sedans in Neftchala

EghtesadOnline: Iran’s Ambassador to Azerbaijan Javad Jahangirzadeh has said the first cars in a joint venture named Azeurocar are expected to be produced in late September.

News ID: ۷۷۷۵۱۹

09 July 2017

The groundbreaking ceremony for the plant located in Neftchala Industrial District was held in mid-2016. The production center will start the assembly of Iran Khodro’s cars in the neighboring country.

Jahangirzadeh stressed the impact of economic cooperation between Azerbaijan and Iran, and expressed confidence in further strengthening economic relations between the two countries.

The Neftchala plant will have an annual capacity of about 10,000 cars and produce four Iranian car brands: Dena, Runna, Soren and Samand. The project is worth $15 million, Financial Tribune reported.

Earlier, Azeurocar’s representative noted that the price of new cars will be 10,000-12,000 manats ($5,800-7,000), adding that the cars produced at the plant will meet Euro 5 standards.

Production of some spare parts is also planned in local factories. The plant intends to cooperate with Sumgayit Industrial Park and Baku’s energy supplier SOCAR’s new plant.

Some 20% of the vehicles will be exported to CIS and Central Asian countries.

Trade turnover between the countries hit $15.77 million in January 2017, while the index of last January stands at $9.56 million. In 2016, Azerbaijan’s trade turnover with Iran amounted to $210.76 million, which is 70% more than in 2015.