Iran Khodro competency in Azerbaijan’s rich car market (exclusive)
Baku, Azerbaijan, Oct. 27
By Farhad Daneshvar, Dalga Khatinoglu – Trend:
A recent decision on establishing an Azerbaijani-Iranian car joint venture has sparked speculations over the competency of its products in Azerbaijan’s rich car market.
Given that Azerbaijan is an open market to the world’s giant car manufacturers, a group of observers have expressed pessimistic views over the capability of the joint venture to gain the lion’s share of Azerbaijan’s car market.
However, Iran Khodro (IKCO), the co-founder of the car joint venture, believes that inexpensive auto parts, guarantee and after sales services as well as the possibility to pay for the bought cars in installments make the joint venture’s products quite competitive in Azerbaijan.
Low prices for the joint venture’s products will eventually help it lure more customers from the middle class who cannot afford expensive cars, Sabina Nobari, the director of America, Asia, Europe and CIS region at IKCO, told Trend.
The car factory jointly founded by the two countries in Azerbaijan’s Neftchala industrial park will launch its first products as of late May 2017.
Iran Khodro owns 25 percent of the shares of the joint venture and the rest belongs to the Azerbaijani side.
Under a development plan the joint venture intends to produce commercial busses in the future.
Meanwhile, Iranian auto part makers are also expected to cooperate with AzEuroCar LLC for producing auto parts in Azerbaijan.