China’s BYD to invest over $17 million in Azerbaijan’s first electric bus plant

Chinese multinational BYD Co Ltd is set to invest approximately 30 million manats (over $17 million) in the production of electric buses in Azerbaijan, said Seymur Adigozalov, the Chairman of the Board of the Economic Zones Development Agency.

"Chinese company BYD plans to implement a project for the production of electric buses at the Sumgayit Chemical Industrial Park,” Adigozalov said during a press conference, Caliber.Az reports. 

According to him, the estimated investment for the project exceeds 29 million manats ($17 million).

He added that BYD intends to commence production this year, with all necessary infrastructure already in place. Work on installing the production line is expected to begin in the near future.

To recap, on November 13, 2024, Azerbaijan’s Ministry of Economy, Ministry of Digital Development and Transport, and Ministry of Finance signed a "Project Implementation Agreement" with Chinese firm BYD to localize electric bus production.

The deal, signed by senior Azerbaijani officials and BYD representatives, aims to modernize the country’s public transport and support COP29 climate goals. The project, based in Sumgayit Chemical Industrial Park in partnership with "Electrify Azerbaijan," seeks to achieve a 40% localization of spare parts by 2030.

BYD plans to produce 500 buses annually and create 600 jobs. Additionally, 160 BYD electric buses are already in operation. The company also intends to expand into electric light trucks, municipal vehicles, and passenger cars in Azerbaijan.

By Aghakazim Guliyev