A signing ceremony of the Project Implementation Agreement for localizing electric bus production in Azerbaijan with Chinese BYD Company Limited was held in Baku.
Report informs, citing the Azerbaijani Ministry of Economy, the document was signed by First Deputy Minister of Economy Elnur Aliyev, Deputy Minister of Digital Development and Transport Rahman Hummatov, Deputy Minister of Finance Azer Bayramov, BYD Executive Director for Central Asia and Caucasus Chao Shuang, SARDA Group founder and CEO Rauf Khalilov, and Electrify Azerbaijan LLC Director Tariel Rustamov.
The document outlines plans to organize electric bus production in Azerbaijan and localize spare parts manufacturing, with a gradual increase in localization level to 40% by 2030.
Under the contract with BYD, 160 BYD electric buses were delivered to Azerbaijan as a pilot project for COP29 and have been deployed in Baku.
Azerbaijan Investment Company OJSC will participate as a shareholder in the electric bus production project. BYD's partner in Azerbaijan is Electrify Azerbaijan, owned by SARDA Group.
First Deputy Minister of Economy Elnur Aliyev emphasized that the project's main goal is to provide Azerbaijan's public transport system with cleaner and more efficient electric buses and expand local production capacity. The project will create conditions for implementing high technologies in new production areas and ensure job creation in Azerbaijan. The agreement signing within COP29 further demonstrates the country's commitment to global climate change efforts.
According to the Ministry of Economy, BYD will invest $17.1 million in establishing a joint venture for electric bus production at the Sumgayit Chemical Industrial Park. The project plans to increase annual production capacity to 500 units and create 600 new jobs, considering domestic demand and export opportunities.
Additionally, BYD plans to invest in new production facilities to develop the value chain in Azerbaijan. The company plans future cooperation in producing light electric trucks, electric vehicles for municipal services, and passenger electric vehicles.