Azerbaijan has invested AZN 14 million in joint production of specialized vehicles with Russia


February 9, Fineko/ The groundbreaking ceremony of a plant producing commercial vehicles and special purpose vehicles of companies Azermash and Russian automaker GAZ Group has taken place in the Hajigabul Industrial Town today.

Azermash’s chairman of board Emin Akhundov stated at the ceremony that this project is to continue the policy of industrialization in Azerbaijan.

"At the first stage the plant will employ up to 100 people. The annual capacity of the plant will be 1,000 cars a year, and up to 600 cars will be produced at primary stage," Akhundov said.

He pointed out that value of total investment in the plant is estimated in AZN 14 million that were fully provided by Azermash. At the first stage, the plant is to produce basic materials, and then will begin manufacture of commercial and specialized vehicles. The output is in great demand in the local market that gives a reason to predict large sales volumes.

"The annual domestic demand for commercial and specialized vehicles in Azerbaijan is about 1,000 cars and we plan to cover 50-60% of the demand due to our production. Domestic production will also allow reducing the price of those cars by 25-30% by cutting their cost of production and import," Akhundov said.

According to Azermash’s representative, commissioning of the plant is scheduled for the end of 2020.

Last September GAZ Group and Azerbaijan’s car producer Azermash signed the agreement on the creation of assembly production of cars and buses in Azerbaijan. Within the agreement it is planned to build an enterprise on assembly of commercial vehicles of GAZ brand and buses LiAZ and Vector NEXT on the territory of Azerbaijan.

In compliance with the agreement Azermash will build in the city of Hajigabul a plant for manufacturing light commercial vehicles and buses. The start of production of equipment is scheduled for the end of 2019. The first phase includes start of production of GAZ vehicles, including the range of cars GAZelle NEXT, Gazon NEXT and BUSINESS GAZelle and Sobol BUSINESS and their four-wheel drive versions. At the second stage, production of Vector NEXT and LiAZ buses will begin. Production of various versions of special equipment, including cars for municipal services, ambulances, school vans will be organized on the basis of GAZ cars in the future.