16:53 - 2.07.2024
July 2, Fineko/abc.az. In order to provide the bus fleet in Azerbaijan at the expense of local production, a framework agreement has been signed with Chinese company BYD Company Ltd.
ABC.AZ reports with reference to the Ministry of Economy that the signing ceremony took place at a meeting in the Azerbaijani Cabinet Ministers with participation of Deputy Prime Minister Shahin Mustafayev.
The framework agreement on joint cooperation was signed by First Deputy Minister of Economy Elnur Aliyev, Deputy Minister of Digital Development & Transport Rahman Gummetov, BYD Executive Director for Commercial Vehicles Tien Chunlong and Director of Electrify Azerbaijan LLC Tariel Rustamov.
The agreement envisages purchase and maintenance of electric buses, creation and localization of their production in our country.
The aim of the project is to develop electric transport infrastructure, ensure passenger comfort, reduce harmful effects on the environment, as well as improve the environmental situation in the country.
As part of the agreement, BYD plans to invest in new production facilities in order to develop the value chain in our country. From 2026, it is planned to cooperate with the company in the production of low-tonnage electric trucks, electric vehicles for public utilities, passenger electric vehicles, and from 2028, the assembly of batteries to save electricity. The joint venture created within this project plans additional investments in the amount of $60 million.
After the establishment of production of electric buses in Azerbaijan, demand will be met through domestic production. At the current stage, BakuBus LLC will purchase 160 electric buses and 100 electric charging devices from BYD. By October 31, 2024, it is planned to put buses on route lines in Baku.
As part of cooperation with BYD, in 2025 it is planned to establish local production of electric buses and the phased localization of their spare parts. Also, within the project, support mechanisms, financing of a joint venture, provision of intellectual property rights, etc. are provided. Localization is expected to account for 40% of the total cost of buses by 2030. The signing of the agreement on the project is scheduled for September 2024.
Azerbaijan Investment Company will participate in the project for production of electric buses in our country as a shareholder. The partner of the BYD project in Azerbaijan is Electrify Azerbaijan LLC, owned by the SARDA Group of Companies.
The JV plans to invest about $34 million in the construction of an electric bus manufacturing plant on the territory of the Sumgayit Chemical Industrial Park, which will be built by Chinese company BYD. Taking into account domestic demand and export opportunities, annual production is planned in the amount of 500 units. It is planned to create 800 new jobs within the project.
