Azerbaijan signs deal with BYD to localise electric bus production PHOTO

13 November 2024 15:52

On November 13, 2024, Azerbaijan's Ministry of Economy, Ministry of Digital Development and Transport, and Ministry of Finance officially signed a "Project Implementation Agreement" with the Chinese company BYD for the localisation of electric bus production in the country.

The agreement, which was signed by senior officials including First Deputy Minister of Economy, Elnur Aliyev, and Deputy Minister of Digital Development and Transport, Rahman Hummatov, alongside representatives from BYD and local partners, sets the stage for the establishment of electric bus production in Azerbaijan, Caliber.Az reports.

This collaboration, part of Azerbaijan's broader efforts to reduce emissions and contribute to global climate change mitigation in line with COP29 goals, aims to enhance the energy efficiency, safety, and environmental sustainability of the nation's transport system.

As part of the agreement, the project will see the local manufacturing of electric buses, with a goal of achieving a localisation level of 40% for spare parts by 2030. This initiative is part of Azerbaijan’s broader strategy to modernise its public transport fleet and reduce its carbon footprint, in line with international climate change efforts.

Meanwhile, 160 pilot electric buses from BYD have already been imported and put into operation on Azerbaijan’s public transport routes. Elnur Aliyev emphasised that the project’s primary objective is to enhance the country's public transport system with cleaner and more efficient electric buses, while also expanding local manufacturing capabilities.

The project will be developed in partnership with "Electrify Azerbaijan," a subsidiary of the SARDA Group, and will be based in the Sumgayit Chemical Industrial Park. BYD has committed to an investment of $17.1 million to establish the joint venture. With a focus on meeting domestic demand and exploring export opportunities, the venture aims to increase annual production capacity to 500 units and create 600 new jobs.

In addition to electric buses, BYD plans to expand its operations in Azerbaijan by investing in new production facilities for electric light trucks, municipal electric vehicles, and passenger electric cars, further contributing to the country’s green technology landscape.

Founded in 1995, BYD has become a global leader in new energy vehicles, with a record-breaking 3 million vehicles sold in 2023. The company is renowned for its innovations in electric mobility, electronics, renewable energy, and rail transport.