The two automotive companies have established a joint venture dubbed Khazar Car Factory located in southeast Azerbaijan in the Neftchala Industrial District.
Head of IKCO operations in Asia, Europe, America and Commonwealth of Independent States, Sabina Nobari says, “Arrangements are being made to initiate the export of Khazar Car Factory’s products,” IKCO Press reported.
Currently all the cars produced at Khazar factory are sold in Azerbaijan, however, future target markets include Russia, Ukraine and the Commonwealth of Independent States, according to Financial Tribune.
According to Nobari, Khazar is a good example of regional collaborations, and tapping its potential, IKCO hopes to claim a bigger share of the regional market trying to outperform rivals namely Chinese and Russian carmakers present in the region.
She further stated that IKCO is planning to enhance the after-sales services it offers in the country.
Emblem of Mutual Ties
Khazar Car Factory was established in March 2018 during a state visit by President Hassan Rouhani to Azerbaijan. He was accompanied by his Azeri counterpart Ilham Aliyev during the inauguration ceremony. Aliyev had praised the JV as “a manifestation of Iran-Azerbaijan relations.”
The joint venture has targeted an initial annual output of 6,000 vehicles, with the number hoped to rise over time up to 50,000.
The models which are manufactured at the factory are budget family cars popular in Iran, among which are Dena, Runna and Samand.
Mass production of Dena began in 2013 and hit the streets in Iran in autumn 2014. The vehicle is built on the platform of locally designed Samand, Iran’s first homegrown car.
IKCO produced 43,088 units of the model during the year which ended in March in Iran, up 53% from the year before.