Iran's automaker will increase exports to Azerbaijan

Baku. 24 October. REPORT.AZ/ Iran's major automakers, Iran Khodro and SAIPA, have announced schemes to expand overseas operations.

Report informs referring to the Iranian media.

According to IKCO's Managing Director Hashem Yekezare, the company has put “export of cost-efficient cars on top of its agenda”, local automotive website Khabar Khodro reported.

IKCO’s main target destinations are Algeria, Azerbaijan, Iraq, Oman, Senegal and Tunisia.

Yekezare said the company is set to expand its presence, particularly in Azerbaijan and Iraq.

Notably, based on a joint venture deal signed between IKCO and the Republic of Azerbaijan's Azermash OJSC in 2016 with an initial investment of $15 million, the two companies are constructing a production plant in Neftchala Industrial District located in southeast Azerbaijan. According to official reports, the plant will become operational in the coming months and the first units of the vehicles, namely Dena, Runna, Samand and Soren, are expected to roll out of the production lines by 2018.

The IKCO chief noted that the two sides have agreed to expand collaborations.

“The Azerbaijani side has agreed to increase its investment in the joint venture,” he said.

Yekezare noted that the JV products will be exported to other regional markets.

Under the deal, some 20% of the vehicles will be exported to Commonwealth of Independent States, initially to Belarus and Kazakhstan.

IKCO started operations in Azerbaijan in 2005 by launching the sales of locally designed Samand. In the past decade, 4,500 Iranian vehicles were sold in that country.

Iran's other car maker “SAIPA” is set to increase its exports . SAIPA is currently exporting to several other countries, including Lebanon, Azerbaijan, Armenia, Turkmenistan, Uzbekistan, Egypt, Tunisia, Libya, Senegal, Ivory Coast, Sudan and Djibouti.