According to the agreement, it is planned to establish local production in Azerbaijan and gradually increase the localization level to 40% by 2030.
Increasing energy efficiency, making the transport system safer, more environmentally friendly, and reducing emissions into the atmosphere are among the main goals of our country's sustainable development. For this purpose, the Ministries of Economy, Digital Development, and Transport and Finance are carrying out relevant work to renew our country's bus fleet.
A signing ceremony of the "Project Implementation Agreement" on the localization of electric bus production in Azerbaijan with the Chinese company BYD Company Limited (BYD) was held. The agreement was signed by First Deputy Minister of Economy Elnur Aliyev, Deputy Minister of Digital Development and Transport Rahman Hummetov, Deputy Minister of Finance Azer Bayramov, BYD's Executive Director for Central Asia and the Caucasus Chao Shuang, SARDA Group founder and CEO Rauf Khalilov, and Director of Electrify Azerbaijan LLC Tariyel Rustamov. According to the agreement, the project envisages the establishment of electric bus production and localization of spare parts in Azerbaijan, and the gradual increase in localization to 40% by 2030.
Based on the agreement concluded with the company, 160 BYD electric buses were brought to our country as a pilot within the framework of the COP29 conference and put on the route.
First Deputy Minister of Economy Elnur Aliyev emphasized that the main goal of the project is to provide our country's public transport system with cleaner and more efficient electric buses and expand local production potential. It was noted that the implementation of the project will create conditions for the application of high technologies in new production areas to be created in Azerbaijan and ensure the creation of new jobs. It was noted that the signing of the agreement within the framework of COP29 once again proves our country's commitment to global efforts to combat climate change.
"Azerbaijan Investment Company" OJSC will participate as a shareholder in the project to produce electric buses in our country. BYD's Azerbaijani partner in the project is Electrify Azerbaijan LLC, owned by SARDA Group.
The joint venture to be established by China's BYD to produce electric buses at a plant to be built in the Sumgayit Chemical Industrial Park is expected to invest approximately 17.1 million US dollars. The company plans to increase its annual production capacity to 500 units, taking into account domestic demand and export opportunities, and create 600 new jobs.
At the same time, BYD also plans to invest in new production areas in order to develop the added value chain in our country. The company aims to cooperate in the production of electric light trucks, electric vehicles for public utilities, and electric passenger cars in the future.
Note: Founded in 1995, BYD became the world's first company to sell a record 3 million new energy vehicles in 2023, and the company is considered one of the world's leading technology companies implementing the latest innovations in the fields of automotive manufacturing, electronics, electric batteries, renewable energy, and rail transportation.
