Azernews.Az

By Sara Israfilbayova

First cars of Azerbaijan-Iran joint plant will be manufactured in September.

Groundbreaking ceremony for the joint plant located at the territory of Neftchala Industrial district was held in mid 2016. The project is implemented by Azerbaijani company AzEurocCar and Iranian manufacturer Khodro cars.

Iranian ambassador to Azerbaijan Javad Jahangirzadeh, answering Trend’s correspondent’s question on July 5, said that the first cars are expected to be produced in late September 2017.

He also stressed the high level of economic cooperation between Azerbaijan and Iran and expressed confidence in the further strengthening of economic relations between the two countries.

The plant with a capacity of about 10,000 cars per year will produce four Iranian car brands – Dena, Runna, Soren and Samand. The project is worth $15 million.

Earlier, AzEuroCar’s representative noted that the price of new cars will be 10,000-12,000 manats ($5,800-7,000), adding that the cars produced at the plant will meet Euro 5 standard.

Production of some spare parts is planned in local factories. The plant intends to cooperate with the Sumgayit Industrial Park and SOCAR’s new plant.

Some 20 percent of the vehicles will be exported to CIS and Central Asian countries.

Azerbaijan and Iran have had diplomatic relations since 1918. Iran recognized Azerbaijan's independence in 1991, and diplomatic relations between the two countries were established in 1992.

The trade turnover between the countries hit some $15.77 million in January 2017, while the index of last January stands at $9.56 million. In 2016, Azerbaijan’s trade turnover with Iran amounted to $210.76 million, which is 70 percent more than in 2015.

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