Next Year To See Start Of Azerbaijan's E-Bus Production
Date
4/9/2024 10:08:21 AM
(MENAFN- Trend News Agency) BAKU, Azerbaijan, April 9. Sumgait ChemicalIndustrial Park will commence production of buses with electricengines as part of its cooperation with the Chinese BYD Company,Trend reports via the Ministry of Economy ofAzerbaijan.
According to the report, efforts are being made to investigatethe possibility of leveraging local resources to localize theproduction of project spares.
Azerbaijan's sustainable development goals include a safer, moreecologically friendly transportation infrastructure and lowergreenhouse gas emissions. To attain this goal, the Ministry ofEconomy, Digital Development, and Transport are working together tomodernize the country's bus fleet. A collaboration with the ChineseBYD Company is ongoing to offer locally made buses for Azerbaijan'sbus fleet. BYD was chosen from nine Chinese, Russian, and Hungarianenterprises that presented ideas in this industry.
Azerbaijan Investment Company OJSC will join the electric busproduction project as a shareholder. Electrify Azerbaijan LLC, amember of the SARDA Group, will be BYD's local partner in theproject. BYD intends to invest an initial $34 million inmanufacturing electric motor buses at the plant to be establishedin Sumgait Chemical Industrial Park. The company anticipates anannual production volume of 500 units, considering both domesticdemand and export prospects. The project aims to generate 800 newjob opportunities.
Starting in the third year of production, there are plans tolocalize the production of spare parts for electric motor busesmanufactured by the company. By 2030, this localization is expectedto reach 40 percent of the total bus cost. The exploration of localpotential for this purpose has already begun. Bus production on alocal scale is set to commence in 2025. Additionally, BYD'selectric buses are scheduled to be introduced to Azerbaijan duringthe COP29 event in November 2024.
Future plans involve collaborating with BYD in various sectors,including the production of light-duty electric cargo vehicles,electric vehicles for public utilities, electric passenger cars,and battery assembly for energy storage. The company intends tomake additional investments of approximately $60 million in theseprojects.
Established in 1995, BYD achieved a historic milestone bybecoming the first company worldwide to reach record sales of 3million vehicles in 2023. Renowned as one of the world's premiertechnology firms, BYD is at the forefront of innovation inautomobile manufacturing, electronics, electric batteries,renewable energy, and railway transportation.
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