Iran looks to Azerbaijan for car assembly plant

Business Materials 28 July 2015 17:42 (UTC +04:00)
Iran intends to open a car assembly plant in Azerbaijan.
Iran looks to Azerbaijan for car assembly plant

Tehran, Iran, July 28

By Temkin Jafarov - Trend:

Iran intends to open a car assembly plant in Azerbaijan, Hashim Yeke Zare, director of Iranian large auto company İran Khodro (IKCO), told Trend July 28.

"At present, Iran Khodro exports cars to Azerbaijan, but at the same time the company plans to open a Complete Knock Down in the country," he said.

"The talks are being held with the Azerbaijani businessmen in this direction," he said. "Iran intends to get a license of the Azerbaijani relevant authorities to build the plant."

"The plant will be built by using an Azerbaijani businessman's investments," he said. "At the first stage, cars will be assembled in Azerbaijan."

He said that İran Khodro intends to begin car production in Azerbaijan two years after obtaining a license.

"The main priority for the company is the production of qualitative cars in Azerbaijan," he said.

The company head said it is planned to manufacture 10,000 cars per year at the plant to be constructed in Azerbaijan, adding that part of these cars will be exported.

He said Iran plans to export 2,000 cars to Azerbaijan in 2015.

Iran Khodro company manufactured around 360,000 cars in 2015, while it plans to increase this figure to 600,000 in 2015.

Around 1.091 million cars were manufactured in Iran in 2014, while the country plans to bring this figure to 3 million by 2025.

The number of cars exported to Azerbaijan in Jan.-June 2015 was 17,640, or 48.7 percent less than in the same period of 2014, according to the country's State Customs Committee.

Edited by SI


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